Contemporary Amperex Technology (CATL) has recently received approval from China’s securities regulator, the China Securities Regulatory Commission, for a share sale in Hong Kong. This move is anticipated to raise a minimum of $5 billion for the Chinese battery manufacturer, making it the largest listing in the city in the past four years, as reported by Reuters.
CATL is currently gearing up to issue overseas listed foreign shares (H shares) and list on the main board of the Hong Kong Stock Exchange (HKEX). The company plans to issue no more than 220.17 million shares of overseas listed common shares for the HKEX, as per the registration notice received from the China Securities Regulatory Commission.
As part of the regulatory requirements, CATL must comply with reporting regulations through the registration management information system for any significant events during the issuance and listing process. Additionally, within 15 working days after completing the overseas issuance and listing, CATL is obligated to report the status of the process through the same information system.
In the event that CATL does not finalize the overseas issuance and listing within 12 months from the filing notice date and intends to continue the process, it must update the filing materials accordingly. The company has disclosed in its HKEX listing application that a portion of the funds raised will go towards constructing a €7.3 billion ($7.53 billion) battery plant in Hungary.
This development comes amidst substantial fundraising activities by Chinese electric vehicle manufacturers Xiaomi and BYD, who have collectively raised nearly $11 billion in the past month through share sales to support their expansion plans.
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