CATL, the world’s largest maker of electric vehicle (EV) batteries, has officially announced its plan for a secondary listing in Hong Kong. This decision comes after a recent media report hinted at the possibility earlier this month.
The board of directors of CATL, which is currently listed on the Shenzhen Stock Exchange, has approved a proposal to list its shares on the Hong Kong Stock Exchange. The company aims to complete this listing within 18 months, choosing the right timing and offering window for the process.
According to CATL, the objective behind this move is to further enhance the company’s global strategic layout, establish an international capital operation platform, and enhance its overall competitiveness in the market. However, the plan is still subject to approval from securities regulators in both the Chinese mainland and Hong Kong.
While CATL has not disclosed the number of shares it plans to issue in Hong Kong or the amount it aims to raise, Bloomberg reported on December 19 that the company could raise at least $5 billion through this listing, potentially making it the biggest listing in Hong Kong since early 2021.
CATL, headquartered in Ningde, Fujian province in China, was listed on the Shenzhen Stock Exchange in 2018 and has seen a significant rise in its market capitalization this year, currently standing at RMB 1.15 trillion ($158 billion).
In its recent financial results announced in October, CATL reported a revenue of RMB 92.28 billion in the third quarter, reflecting a 12.48 percent year-on-year decrease but a 6.07 percent increase from the second quarter. The company also reported a net income of RMB 13.14 billion in the third quarter, marking the second-highest on record, along with a record gross margin of 31.17 percent.
CATL’s installed power battery volume in the January-October period was 252.8 GWh, commanding a global market share of 36.8 percent, as per data from South Korean market researcher SNE Research.
The company’s decision to list in Hong Kong is a strategic move aimed at expanding its global presence and accessing international capital markets. With its strong financial performance and dominant position in the EV battery market, CATL’s upcoming listing is expected to draw significant investor interest and further solidify its position as a key player in the industry.
