CATL (SHE: 300750) is gearing up for its upcoming Hong Kong listing, with plans to raise up to $4 billion. The Chinese power battery giant will offer 118 million H-shares in a global offering on May 12-15, with a price cap of HK$263 per share. This move is expected to bring in around HK$31 billion, or approximately $3.99 billion.
The offer price represents a 1.43 percent discount to CATL’s closing price on the Chinese mainland A-share market. The company has allocated 7.5 percent of the offering to the Hong Kong public and 92.5 percent to international investors. Trading of CATL shares on the Hong Kong Stock Exchange will commence on May 20 at 9 am, with shares traded in lots of 100 H shares.
CATL anticipates net proceeds of about HK$30.7 billion, with 90 percent earmarked for advancing the construction of phases I and II of its Hungary project. The remaining 10 percent will be allocated for working capital and general corporate purposes.
As the world’s largest manufacturer of electric vehicle (EV) batteries, CATL commands a global market share of 38.3 percent for the January-March period, according to SNE Research. The company boasts 13 battery production bases, 6 R&D centers, and service outlets in 64 countries and regions worldwide. CATL has achieved mass production of lithium-ion battery cells in Germany and is progressing with the construction of a plant in Hungary.
In a strategic move, CATL announced a joint venture with Stellantis to build an LFP battery plant in Spain, with a planned investment of $4.26 billion. The company’s EV battery installed capacity for 2024 stood at 246.01 GWh, marking a 47.21 percent increase from the previous year. CATL reported a net income of RMB 50.75 billion in 2024, reflecting a 15.01 percent year-on-year growth, while revenue for the same period totaled RMB 362.01 billion, down 9.70 percent year-on-year.
Investors are eagerly awaiting CATL’s Hong Kong listing, which promises to bolster the company’s presence in the global EV battery market and fuel its ambitious expansion plans. Keep an eye on CATL as it continues to lead the charge in sustainable energy solutions.
