The world’s leading battery maker, Contemporary Amperex Technology (CATL), recorded a strong start in its Hong Kong market debut, with shares climbing as high as 14% to approximately HK$300 per share, up from the initial public offering price of HK$263.
The IPO generated HK$35.7 billion ($4.6 billion), marking what is reportedly the largest global listing of 2025, according to the company. Meanwhile, CATL’s shares on Shenzhen’s exchange dipped by 1.2%.
In its Hong Kong filing, the company announced that it plans to direct 90% of the raised capital towards establishing a new manufacturing plant in Hungary. This facility will focus on delivering batteries to major European car manufacturers, including Stellantis, BMW, and Volkswagen.
CATL’s efforts to expand internationally align with similar moves by top Chinese electric vehicle manufacturers like BYD. Nonetheless, these initiatives encountered obstacles last year when the United States and European Union imposed punitive tariffs on Chinese-manufactured EVs, alleging unfair trading practices.
Moreover, earlier this year, CATL faced further hurdles under the U.S.-China trade issues, with the Pentagon placing it on a watchlist over purported ties to China’s military, claims that CATL has denied.
In March, CATL reported a 9.7% drop in annual revenue for 2024, facing stiff competition in China’s EV sector, although the company’s net profits still rose by 15% year-over-year.
China’s EV market saw robust demand last year, driven by government subsidies and consumer incentives, with sales soaring to 11 million in 2024, up 40% compared to the prior year, as per data from U.K. research firm Rho Motion.
Brendan Ahern, Chief Investment Officer at KraneShares, expressed strong support for CATL, labeling it an essential part of his global EV investment strategy alongside BYD.
Prominent banks, including Bank of America, China International Capital Corporation, Goldman Sachs, Morgan Stanley, and JPMorgan Chase, acted as joint lead managers for the Hong Kong listing.
As per a report by CNBC, Andy Maynard from China Renaissance highlighted that despite recent trade tensions between the world’s largest economies, investors continue to see China as a source of valuable investment opportunities, as evidenced by CATL’s IPO.
