• Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock
Investing

CATL IPO: will the EV battery giant’s Hong Kong debut revive the city’s capital markets?

by February 12, 2025
written by February 12, 2025

Contemporary Amperex Technology Co. Ltd. (CATL), the world’s largest electric vehicle battery manufacturer, has filed for a secondary listing in Hong Kong in what could be the city’s largest stock offering in years.

The move by the Shenzhen-listed battery giant, a key supplier to Tesla, Volkswagen, and other major automakers, underscores Hong Kong’s growing role as a capital-raising hub for Chinese firms.

The long-anticipated listing is part of a broader wave of Chinese companies seeking offshore funding, with analysts forecasting a $20 billion rebound in Hong Kong’s initial public offerings this year.

CATL has appointed JPMorgan, Bank of America, China’s CICC, and China Securities International as lead banks for the offering, with Goldman Sachs, Morgan Stanley, and UBS also involved in the deal.

The listing, however, comes at a delicate time for CATL.

The company was added to a US blacklist last month for alleged ties to China’s military, raising potential challenges for its overseas expansion.

In its prospectus, CATL dismissed the designation as a mistake and stated it was actively working to have it removed.

The restriction limits the company’s dealings with certain US government agencies but does not directly impact its global commercial operations.

CATL could raise up to $7 billion

While CATL has not disclosed the exact size or timeline of the offering, market sources suggest it could raise up to $7 billion, depending on market conditions.

Morgan Stanley had earlier estimated that the listing could bring in as much as $7.7 billion.

The company intends to use the funds to accelerate its global expansion, including a new production facility in Hungary and a joint venture with Stellantis in Spain.

CATL is also investing in battery projects in Indonesia as part of its broader strategy to solidify its position as the dominant player in the EV battery market.

Despite its market leadership, CATL has warned of a potential revenue decline of up to 11% in 2024 due to lower product prices.

The company, which has held the top spot in the global EV battery industry for eight consecutive years with a 38% market share in 2024, reported revenues exceeding $50 billion in 2023.

However, it expects net income growth of up to 20% for last year, its slowest pace since 2019.

Can CATL’s listing boost Hong Kong’s capital market

CATL’s listing is expected to be a crucial test for Hong Kong’s stock market, which has struggled with weak deal flows in recent years.

The city’s capital markets have seen a resurgence in early 2025, driven in part by renewed investor confidence in Chinese technology and electronics stocks.

The Hang Seng Index has climbed 13% over the past month, bolstered by optimism following breakthroughs in artificial intelligence and a more favorable economic outlook.

“It is too early to say Hong Kong is back,” Gary Ng, a senior economist at Natixis, told the FT.

The CATL listing “signals that Hong Kong still has advantages for Chinese firms seeking overseas funding”, Ng said, but added that “equity investors remain sceptical of valuations due to decelerating growth in China and geopolitics”. 

Hong Kong’s investment banks may also see limited gains from the renewed IPO activity.

The Financial Times recently reported that rising competition from Chinese banks has pressured fees for deals like CATL’s, making it harder for global banks to profit from the listing boom.

CATL’s heavily redacted filing also flagged currency risks, noting that fluctuations in the renminbi could impact its ability to pay dividends in Hong Kong dollars.

Such concerns reflect broader uncertainties surrounding Chinese firms seeking offshore listings amid volatile economic conditions.

As CATL moves forward with its Hong Kong debut, investors will be watching closely to see whether the offering can reinvigorate the city’s IPO market and whether geopolitical risks will pose any further hurdles to its global ambitions.

The post CATL IPO: will the EV battery giant’s Hong Kong debut revive the city’s capital markets? appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Apple is partnering with Alibaba for AI in China: here’s why
next post
New resistance battling Trump’s second term through onslaught of lawsuits taking aim at EOs

related articles

Asian markets open: Nikkei, Hang Seng fall on...

June 12, 2025

Aluminum and steel tariffs spark rise in secondary...

June 12, 2025

Airbus sees aviation boom ahead, global fleet to...

June 12, 2025

US-China trade talks and Washington’s decade-long effort to...

June 12, 2025

Europe markets open: Stoxx 600 dips as UK...

June 12, 2025

UK GDP falls by 0.3% in April as...

June 12, 2025

Gordon Brothers buys Poundland; pledges £80 mn for...

June 12, 2025

Air India plane crash: London-bound flight with 242...

June 12, 2025

Air India plane crash live update: Indian President...

June 12, 2025

Copper remains supported for now even as China...

June 12, 2025
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest News

  • Blinken confirms Iran supplying Russia with short-range ballistic missiles

    September 10, 2024
  • Cantor, Tether, and SoftBank back $3B Bitcoin fund amid Trump-era crypto momentum

    April 23, 2025
  • Judge allows lawsuit over Burger King’s Whopper ads to move forward

    May 7, 2025
  • Abercrombie expects a strong holiday quarter as growth run continues

    November 27, 2024
  • Long DASH: Prices Form Midpoint Gap Reversal Rebound from 5-Year VPOC

    July 22, 2024

Popular Posts

  • 1

    Secret Service admits leaning on ‘state and local partners’ after claim it ignored Trump team’s past requests

    July 21, 2024
  • 2

    Five more House Democrats call on Biden to drop out, third US senator

    July 19, 2024
  • 3

    Elon and Vivek should tackle US funding for this boondoogle organization and score a multimillion dollar win

    December 4, 2024
  • 4

    Forex Profit Calculator: Maximize Your Trading Potential

    July 10, 2024
  • 5

    Biden calls to ‘lower the temperature’ then bashes Trump in NAACP speech

    July 17, 2024

Categories

  • Economy (829)
  • Editor's Pick (5,805)
  • Investing (634)
  • Stock (895)

Latest Posts

  • ‘It’s sort of scary’: Officials flag surprising revelations from deep State Department cuts

    July 16, 2025
  • Obama wishes wife Michelle happy birthday as she stays away from key public events

    January 17, 2025
  • Ukrainian designer predicts Zelenskyy will wear military suit for high-stakes Trump meeting

    August 18, 2025

Recent Posts

  • Ukraine launches biggest drone attack on Moscow, killing 2, as US talks begin

    March 11, 2025
  • NRCC launches ad campaign targeting dozens of vulnerable Dems who voted against key Trump proposal

    April 11, 2025
  • Palantir shares surge 6% following strategic partnership with Microsoft

    August 8, 2024

Editor’s Pick

  • BAE Stock Is Trading at 1,267. What’s the Forecast?

    August 12, 2024
  • Chinese stocks surge on AI optimism, nearing three-year highs

    February 14, 2025
  • The Euro index is increasing and the Yen index is stagnating

    July 15, 2024
  • About us
  • Contacts
  • Privacy Policy
  • Terms & Conditions

Disclaimer: moneyrisetoday.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2025 moneyrisetoday.com | All Rights Reserved

Money Rise Today – Investing and Stock News
  • Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock