300750.SHE

Leading electric-vehicle (EV) battery maker Contemporary Amperex Technology Co. (300750.SZ), or CATL, received a listing approval notice from the China Securities Regulatory Commission (CSRC) on Tuesday — a necessary step for Chinese companies seeking to list offshore. The company plans to issue up to 220 million shares for the new listing on the Hong Kong Stock Exchange, the notice said.

The battery giant filed its listing application with the Hong Kong Stock Exchange last month. Bloomberg cited sources saying the company aims to raise at least $5 billion, while Morgan Stanley analysts estimate the offering could fetch between $6.8 billion and $7.7 billion. A figure in that range could surpass Kuaishou ‘s (1024.HK) $6.2 billion IPO in 2021 to become Hong Kong’s largest new listing in recent years.

CATL’s Shenzhen-listed shares have declined 2.5% year to date, with the company maintaining a market capitalization of more than 1.14 trillion yuan ($156.9 billion).

By Lee Shih Ta

To subscribe to Bamboo Works weekly free newsletter, click here

Recent Articles

Illustration of Hong Kong as a ipo pipeline and crypto lab for China

Hong Kong: China’s IPO pipeline and crypto lab

Companies raised $13.6 billion through Hong Kong IPOs in the first half of the year, giving the city the global fundraising title for that period. What's behind the sudden boom? And a growing number of Chinese companies are experimenting with cryptocurrencies in Hong Kong, even as such currencies are banned on the Mainland. What's driving such different approaches on the Mainland and in Hong Kong?