BRIEF: CATL targets $4 billion in Hong Kong IPO, poised to become year’s top listing

Electric vehicle (EV) battery maker Contemporary Amperex Technology Co. Ltd.  (3750.HK; 300750.SZ) launched its Hong Kong IPO on Monday, aiming to raise up to HK$31 billion ($4 billion) through the sale of nearly 118 million shares. The company said it will allocate 7.5% of the shares to local retail investors, with a sale price of up to HK$263 per share, making the listing Hong Kong’s biggest this year.

Bloomberg reported the offering will follow a Hong Kong Stock Exchange provision that exempts it from U.S. registration requirements. Such a structure bars sales of the stock to U.S.-based investors, aiming to mitigate regulatory risks.

The company has demonstrated consistent profit growth over the last three years, with its net income rising from 33.5 billion yuan ($4.63 billion) in 2022 to 47.3 billion yuan in 2023, and 55.3 billion yuan in 2024.

Cornerstone investors in the Hong Kong listing include the Kuwait Investment Authority (KIA) and Sinopec Group, each committed to purchasing $500 million in shares. Chinese private equity heavyweight Hillhouse Capital has also pledged to buy $200 million. Approximately 90% of the proceeds will go to fund construction phases one and two of CATL’s new production base in Hungary, with the remainder allocated to general working capital.

By Lau Chi Hang

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