Shares of CATL debut in Hong Kong on Might 20, 2025.
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Shares of the world’s largest battery producer Up to date Amperex Know-how rose as a lot as 14% of their Hong Kong buying and selling debut on Tuesday.
Shares had been final buying and selling up 11% at 292 Hong Kong {dollars} apiece on the Hong Kong inventory change premarket, in contrast with the preliminary public providing value of HK$263 {dollars} per share.
CATL IPO raised HK$35.7 billion ($4.6 billion) in line with a firm submitting, reportedly making it the largest international itemizing in 2025. CATL shares on mainland China’s Shenzhen Inventory Change had been down 1.2%.
The corporate stated in its Hong Kong submitting that 90% of the funds raised will go towards constructing its upcoming manufacturing facility in Hungary, aimed toward supplying batteries to European automotive shoppers together with Stellantis, BMW and Volkswagen.
CATL’s international push has coincided with expansions from main Chinese language EV makers comparable to BYD. Nevertheless, these efforts hit a pace bump final 12 months when the U.S. and EU positioned punitive tariffs on EVs made in China, citing unfair commerce practices.
The corporate additionally discovered itself within the crosshairs of U.S.-China commerce tensions earlier this 12 months, with the Pentagon inserting it on a watchlist in January over suspected hyperlinks to China’s navy — allegations the corporate has rejected.
In March, CATL posted a 9.7% drop in its 2024 annual income, hit by intense competitors in China’s electric-vehicle market that pressured the world’s high battery producer. Nonetheless, the corporate’s web revenue went up by 15% 12 months over 12 months.
Demand for electrical automobiles in China, a essential marketplace for CATL, gained momentum final 12 months on the again of a mixture of subsidies and shopper buy incentives. EV gross sales in China surged to 11 million in 2024 — a 40% enhance in comparison with the earlier 12 months, information from U.Okay. analysis agency Rho Movement confirmed.
“We’re a giant believer and investor in CATL in our international EV technique. It is simply phenomenal, it is a ‘should personal firm,’ for my part, together with BYD for buyers within the area,” stated Brendan Ahern, chief funding officer at KraneShares.
Financial institution of America, China Worldwide Capital Company, Goldman Sachs, Morgan Stanely, JPMorgan Chase had been the joint lead mangers for the Hong Kong providing.
Talking on Squawk Field Asia on Tuesday, Andy Maynard, managing director and head of equities at China Renaissance, stated that the CATL’s IPO exhibits that buyers nonetheless look to China to search out high quality performs regardless of latest commerce tensions between Beijing and Washington.
Correction: This story was revised to precisely mirror the bounce in shares at market open.
