CATL applies to sell stock in Hong Kong, in what could be city’s largest IPO since 2021
Source: https://evlife.sg/blog/catl-applies-to-sell-stock-in-hong-kong-in-what-could-be-city%E2%80%99s-largest-ipo-since-2021
Contemporary Amperex Technology, the world’s largest producer of batteries for electric vehicles (EVs), is proceeding with a plan to list its shares in Hong Kong, in what could be the city’s biggest initial public offering (IPO) in more than four years.
CATL, as the Chinese company is known, submitted its application draft with the Hong Kong stock exchange on Tuesday, following the board’s approval in December. The IPO size and timeline were not disclosed. A US$5 billion deal, as reported by Reuters, would rank as the largest since Kuaishou Technology raised US$6.2 billion in January 2021.
BofA Securities, China International Capital Corporation (CICC), China Securities International and JPMorgan Chase were listed as joint sponsors, while Goldman Sachs, Morgan Stanley and UBS will also have an unspecified role in the deal, according to the draft.
CATL’s yuan-denominated shares fell 2.6 per cent to 251.80 yuan in Shenzhen before the announcement, giving it a market value of 1.1 trillion yuan (US$150.5 billion). They have declined about 5 per cent this year, after a 68 per cent surge in 2024.
“CATL has ambitions of expanding its worldwide footprint since it can chase higher profitability outside mainland China,” said Davis Zhang, a senior executive at Suzhou Hazardtex, a supplier of specialised batteries. “With production and technological advantages over their global rivals, Chinese EV players are often welcome in overseas markets to localise their research and manufacturing expertise.”
CATL said proceeds from its proposed IPO would be used to reinforce its global expansion, a move that will enhance China’s dominance in the EV supply chain. Based in Ningde in eastern China’s Fujian province, CATL controls 37 per cent of the global EV battery market, topping its rivals for the past eight years.
Global EV battery shipments rose at an annual compound rate of 52 per cent to 974 gigawatt-hours (GWh) from 2020 to 2024, CATL said. They are projected to reach 3,758 GWh in 2030. One GWh can supply up to 13,000 EVs with a driving range of 500km.
CATL’s net income for 2024 could rise by as much as 20 per cent from a year earlier to 53 billion yuan. It supplied 339.3 GWh of battery cells to customers in 2024, 32 per cent more than a year earlier, including to big customers like Tesla and BMW.
The company announced a €240 million (US$261 million) investment to build a battery factory in Germany in 2018. It disclosed in December a plan to build a factory in northeastern Spain through a venture with Fiat’s owner Stellantis for its third production base in Europe.
Chinese EV builders and supply-chain vendors are now actively seeking to set up production bases abroad as a way of bypassing punitive tariffs levied by the US and European Union last year. In January, the US added CATL to a list of entities allegedly linked to the Chinese military, which the firm denied.
Hong Kong’s IPO market is recovering as more mainland-listed companies pursue a flotations to broaden their funding avenues. About 100 companies were in the IPO pipeline, according to Bonnie Chan Yiting, CEO of Hong Kong Exchanges & Clearing Limited, in an interview last month.
Source: https://evlife.sg/blog/catl-applies-to-sell-stock-in-hong-kong-in-what-could-be-city%E2%80%99s-largest-ipo-since-2021
Contemporary Amperex Technology, the world’s largest producer of batteries for electric vehicles (EVs), is proceeding with a plan to list its shares in Hong Kong, in what could be the city’s biggest initial public offering (IPO) in more than four years.
CATL, as the Chinese company is known, submitted its application draft with the Hong Kong stock exchange on Tuesday, following the board’s approval in December. The IPO size and timeline were not disclosed. A US$5 billion deal, as reported by Reuters, would rank as the largest since Kuaishou Technology raised US$6.2 billion in January 2021.
BofA Securities, China International Capital Corporation (CICC), China Securities International and JPMorgan Chase were listed as joint sponsors, while Goldman Sachs, Morgan Stanley and UBS will also have an unspecified role in the deal, according to the draft.
CATL’s yuan-denominated shares fell 2.6 per cent to 251.80 yuan in Shenzhen before the announcement, giving it a market value of 1.1 trillion yuan (US$150.5 billion). They have declined about 5 per cent this year, after a 68 per cent surge in 2024.
“CATL has ambitions of expanding its worldwide footprint since it can chase higher profitability outside mainland China,” said Davis Zhang, a senior executive at Suzhou Hazardtex, a supplier of specialised batteries. “With production and technological advantages over their global rivals, Chinese EV players are often welcome in overseas markets to localise their research and manufacturing expertise.”
CATL said proceeds from its proposed IPO would be used to reinforce its global expansion, a move that will enhance China’s dominance in the EV supply chain. Based in Ningde in eastern China’s Fujian province, CATL controls 37 per cent of the global EV battery market, topping its rivals for the past eight years.
Global EV battery shipments rose at an annual compound rate of 52 per cent to 974 gigawatt-hours (GWh) from 2020 to 2024, CATL said. They are projected to reach 3,758 GWh in 2030. One GWh can supply up to 13,000 EVs with a driving range of 500km.
CATL’s net income for 2024 could rise by as much as 20 per cent from a year earlier to 53 billion yuan. It supplied 339.3 GWh of battery cells to customers in 2024, 32 per cent more than a year earlier, including to big customers like Tesla and BMW.
The company announced a €240 million (US$261 million) investment to build a battery factory in Germany in 2018. It disclosed in December a plan to build a factory in northeastern Spain through a venture with Fiat’s owner Stellantis for its third production base in Europe.
Chinese EV builders and supply-chain vendors are now actively seeking to set up production bases abroad as a way of bypassing punitive tariffs levied by the US and European Union last year. In January, the US added CATL to a list of entities allegedly linked to the Chinese military, which the firm denied.
Hong Kong’s IPO market is recovering as more mainland-listed companies pursue a flotations to broaden their funding avenues. About 100 companies were in the IPO pipeline, according to Bonnie Chan Yiting, CEO of Hong Kong Exchanges & Clearing Limited, in an interview last month.
CATL applies to sell stock in Hong Kong, in what could be city’s largest IPO since 2021
Source: https://evlife.sg/blog/catl-applies-to-sell-stock-in-hong-kong-in-what-could-be-city%E2%80%99s-largest-ipo-since-2021
Contemporary Amperex Technology, the world’s largest producer of batteries for electric vehicles (EVs), is proceeding with a plan to list its shares in Hong Kong, in what could be the city’s biggest initial public offering (IPO) in more than four years.
CATL, as the Chinese company is known, submitted its application draft with the Hong Kong stock exchange on Tuesday, following the board’s approval in December. The IPO size and timeline were not disclosed. A US$5 billion deal, as reported by Reuters, would rank as the largest since Kuaishou Technology raised US$6.2 billion in January 2021.
BofA Securities, China International Capital Corporation (CICC), China Securities International and JPMorgan Chase were listed as joint sponsors, while Goldman Sachs, Morgan Stanley and UBS will also have an unspecified role in the deal, according to the draft.
CATL’s yuan-denominated shares fell 2.6 per cent to 251.80 yuan in Shenzhen before the announcement, giving it a market value of 1.1 trillion yuan (US$150.5 billion). They have declined about 5 per cent this year, after a 68 per cent surge in 2024.
“CATL has ambitions of expanding its worldwide footprint since it can chase higher profitability outside mainland China,” said Davis Zhang, a senior executive at Suzhou Hazardtex, a supplier of specialised batteries. “With production and technological advantages over their global rivals, Chinese EV players are often welcome in overseas markets to localise their research and manufacturing expertise.”
CATL said proceeds from its proposed IPO would be used to reinforce its global expansion, a move that will enhance China’s dominance in the EV supply chain. Based in Ningde in eastern China’s Fujian province, CATL controls 37 per cent of the global EV battery market, topping its rivals for the past eight years.
Global EV battery shipments rose at an annual compound rate of 52 per cent to 974 gigawatt-hours (GWh) from 2020 to 2024, CATL said. They are projected to reach 3,758 GWh in 2030. One GWh can supply up to 13,000 EVs with a driving range of 500km.
CATL’s net income for 2024 could rise by as much as 20 per cent from a year earlier to 53 billion yuan. It supplied 339.3 GWh of battery cells to customers in 2024, 32 per cent more than a year earlier, including to big customers like Tesla and BMW.
The company announced a €240 million (US$261 million) investment to build a battery factory in Germany in 2018. It disclosed in December a plan to build a factory in northeastern Spain through a venture with Fiat’s owner Stellantis for its third production base in Europe.
Chinese EV builders and supply-chain vendors are now actively seeking to set up production bases abroad as a way of bypassing punitive tariffs levied by the US and European Union last year. In January, the US added CATL to a list of entities allegedly linked to the Chinese military, which the firm denied.
Hong Kong’s IPO market is recovering as more mainland-listed companies pursue a flotations to broaden their funding avenues. About 100 companies were in the IPO pipeline, according to Bonnie Chan Yiting, CEO of Hong Kong Exchanges & Clearing Limited, in an interview last month.
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