CATL to Bar Some US Funds From World’s Biggest Listing of 2025
Contemporary Amperex Technology Co. Ltd., the world’s largest maker of batteries for electric vehicles, is planning to limit the types of US investors that can participate in its Hong Kong listing. This move indicates that US-China tensions may be spilling into the IPO market.
CATL, as the Chinese company is known, has decided to switch the share sale solely to a so-called Reg S offering. This type of offering doesn’t allow sales to US onshore investors and exempts the issuer from certain US regulatory filing obligations, according to people familiar with the matter who spoke to Bloomberg News.
The decision reflects the growing tensions between the US and China, which are now affecting the IPO market. By limiting the participation of US investors, CATL is navigating the complex regulatory landscape created by these tensions.
This development comes as CATL prepares for what is expected to be the world’s biggest listing in 2025. The company’s decision to restrict US investor participation highlights the challenges faced by Chinese companies looking to raise capital in the global market amidst rising geopolitical tensions.
