CATL Shares Surge in Hong Kong Trading Debut After $4.6 Billion IPO
Shares in CATL, the world’s largest maker of electric vehicle batteries, jumped over 16% on their Hong Kong trading debut after the company raised approximately $4.6 billion in the world’s largest initial public offering this year. The successful listing of Contemporary Amperex Technology Co. in Hong Kong demonstrates continued international investor appetite for leading Chinese manufacturers despite ongoing trade tensions between Beijing and Washington.
The company sold more than 135 million shares at their maximum offer price of 263 Hong Kong dollars ($33.6) each. CATL’s shares rose after starting trading at 296 Hong Kong dollars ($37.80), 12.5% higher than their offer price, and closed 16.4% higher. This strong reception comes despite challenges from the U.S., including being added to a list of companies with alleged ties to China’s military in January – an accusation CATL denied as a “mistake.”
The listing was well-attended by government officials, including Hong Kong’s Financial Secretary Paul Chan, who participated in the gong-striking ceremony. CATL’s chairman Robin Zeng stated that listing in Hong Kong better integrates the company into global capital markets and serves as a new starting point for promoting the global zero-carbon economy. The successful IPO may boost future listing activity in Hong Kong, which saw an 89% year-on-year increase in IPO funds raised in 2024.
CATL reported a profit of 55.3 billion yuan ($7.6 billion) in 2024, representing a 16.8% increase from 2023. The company’s global presence is significant, with its batteries installed in over 17 million electric vehicles worldwide as of the end of 2024.
