Chinese EV battery giant CATL aims to raise US$4b in Hong Kong IPO

Chinese EV battery giant CATL aims to raise US$4 billion in its Hong Kong listing scheduled for May 20, said a statement filed to the bourse Monday, making it the largest IPO expected in the city so far this year.

A global leader in the sector, CATL produces more than a third of all electric vehicle (EV) batteries sold worldwide, working with major brands including Tesla, Mercedes-Benz, BMW and Volkswagen.

The company is already listed in Shenzhen, and its plan for a secondary listing in Hong Kong was announced in a December filing with the stock exchange.

According to a prospectus filed Monday, CATL will offer approximately 117.9 million units priced at up to HK$263 per share (US$33.8) for total expected proceeds of HK$31.01 billion.

Founded in 2011 in the eastern Chinese city of Ningde, Contemporary Amperex Technology Co Limited (CATL) was initially propelled to success by rapid growth in the domestic market.

CATL posted solid performances, with its net profit jumping 32.9 percent in the first quarter.

Funds raised from a secondary listing could be used to accelerate CATL's overseas expansion, particularly in Europe.

The battery giant is building its second factory on the continent in Hungary after launching its first in Germany in January 2023.

In December, CATL announced that it would work with automotive giant Stellantis on a US$4.3 billion factory to make EV batteries in Spain, with production slated to begin by the end of 2026.