CATL’s record fundraising highlights city’s global appeal and market revival

Contemporary Amperex Technology Co Ltd, the Chinese mainland electric-vehicle battery giant, on Monday launched its high-profile initial public offering in Hong Kong, which experts said underscores the city’s pivotal role as a globally recognized IPO hub.

The listing — which could potentially raise up to HK$40.6 billion ($5.21 billion) — could become the world’s biggest share sale this year. It is expected to revive Hong Kong’s IPO market through participation from a more diversified pool of international investors.

This may also be Hong Kong’s largest listing since Kuaishou Technology Co’s IPO in 2021, which raised HK$41.28 billion.

READ MORE: CATL gets Hong Kong approval for this year’s biggest listing

According to its Hong Kong Stock Exchange documents, CATL plans to sell 117.9 million shares at a maximum offer price of HK$263 each. About 7.5 percent of the offering is allocated to retail investors in Hong Kong, with the remainder open to global institutional buyers.

As of Tuesday, CATL’s margin subscription had increased to HK$125.2 billion, with margin oversubscription surpassing 52.8 times.

More than 20 cornerstone investors from around the world have committed a total of $2.63 billion to the IPO. Notably, the Kuwait Investment Authority, which manages Kuwait’s sovereign wealth fund, is one of the largest backers, with an investment of $500 million. Other cornerstone investors include State-owned energy giant Sinopec, Hillhouse Capital, UBS Asset Management, and Oaktree Capital.

The offering period will end on Thursday, with the company aiming to list on the Hong Kong Stock Exchange on Tuesday.

“The revival of Hong Kong’s IPO market is part of a broader trend,” said Kenny Ng Lai-yin, a strategist at Everbright Securities International. If this momentum continues, Hong Kong could reclaim its position as the world’s third-largest IPO market by funds raised this year, he said.

Data from the Hong Kong Stock Exchange shows that 19 companies had listed in the city this year as of April 30, with 18 more IPOs pending and 130 applications being processed.

Bank of China (Hong Kong) said that IPO subscriptions made by its clients in the first quarter of 2025 were seven times higher than the same period last year, according to local media.

Lai Yeye, chief strategist at SPDB International, a subsidiary of Shanghai Pudong Development Bank, attributed the recovery to breakthroughs in Chinese artificial-intelligence technology earlier this year, which bolstered investor confidence. Moreover, higher returns from IPO investments and greater institutional participation have also attracted more retail investors, Lai added.

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Chinese bubble tea chain Auntea Jenny, for instance, saw its shares soar more than 40 percent on its first trading day on Thursday. It closed at HK$131.90 per share on Tuesday, still above its offering price.

Moreover, restaurant operator Green Tea Group completed its public subscription on Tuesday. Although the company targeted HK$1.21 billion in fundraising, the offer was oversubscribed more than 100 times.

These IPOs indicate a growing trend of mainland companies pursuing listings in Hong Kong. Analysts believe that a Hong Kong listing enables these companies to diversify their funding channels and strengthen their international presence, which enhances their global footprint.

The Hong Kong listing marks a key step in CATL’s global expansion, reinforcing its position as a dominant force in the EV battery market amid intensifying international competition.

According to South Korean market research firm SNE Research, CATL remained the world’s largest power battery manufacturer in 2024, with a 37.9 percent share, followed by another mainland company, BYD, with 17.2 percent.

Beyond supplying automakers worldwide, CATL has established six major research-and-development centers and 13 battery manufacturing bases globally, with service outlets spanning 64 countries and regions.

The company announced plans to spend about 90 percent of the proceeds — around HK$27.6 billion — on building a major battery manufacturing facility in Hungary, part of its strategy to expand production capacity in Europe to supply automakers such as Volkswagen.

Contact the writer at irisli@chinadailyhk.com