By P.R. Venkat and Jiahui Huang

Chinese battery giant Contemporary Amperex Technology is planning to raise as much as US$4.0 billion in the year's biggest listing in Hong Kong, looking to tap the market to fund its expansion overseas.

CATL, which supplies batteries to global automakers such as Tesla, will start taking investor orders from Monday, it said in a Hong Kong exchange filing. The company plans to sell a total of 117.89 million shares for a maximum price of 263.0 Hong Kong dollars each, equivalent to US$33.81.

CATL, which is already listed on the ChiNext board of the Shenzhen Stock Exchange, expects to finalize the offer price by Friday.

Shares of the company were 2.6% higher at 254.69 yuan by midday Monday, putting its market capitalization at about US$154.76 billion.

Cornerstone investors including Chinese oil company Sinopec Hong Kong and the Kuwait Investment Authority sovereign-wealth fund have agreed to subscribe to more than half of the shares offered, or around US$2.63 billion of stock. Having cornerstone investors ahead of an IPO helps companies market an offering to investors, especially at times of uncertainty.

The offering comes as global equity markets experience a lift in risk appetite due to easing trade tensions, particularly between the U.S. and China. On Sunday, officials from the U.S. and China concluded high-stakes talks, with Beijing saying that both sides agreed to start a formal negotiation process and Washington touting progress toward a trade deal.

While CATL is relatively shielded from the tariff turmoil given its limited revenue exposure to the U.S. market, it warned about a degree of uncertainty in the outlook.

"We cannot predict how tariff policies in various countries may further evolve or anticipate any potential impacts of subsequent developments in such policies on our business," it said Monday.

CATL is forging ahead with plans to expand abroad, saying it will use 90% of the net proceeds raised for its Hungary factory. The rest will be used for working capital and other general purposes.

The company, which accounted for over one-third of the global battery market in 2024, has 13 manufacturing bases worldwide and service outlets in 64 countries and regions.

According to the prospectus, CATL's EV batteries were installed in more than 17 million vehicles, representing one in every three EVs worldwide in 2024.

BofA Securities, Goldman Sachs, CICC and JPMorgan are among the banks advising CATL on the Hong Kong offer. Bank of America and JPMorgan Chase remained among the advisers for the offering even though they were urged by a U.S. congressional committee in April to withdraw.

That came after CATL in January was added to a list of entities the Pentagon identifies as military in nature. The company has repeatedly denied ties to the Chinese military, and said it isn't involved in any military-related activities.

CATL said again in the prospectus that the designation is a mistake, that it is engaging with the Defense Department, and doesn't expect the issue to have a substantial adverse impact on its business.

CATL is expected to start trading on the Hong Kong exchange on May 20.

Write to P.R. Venkat at venkat.pr@wsj.com and Jiahui Huang at jiahui.huang@wsj.com

(END) Dow Jones Newswires

May 12, 2025 01:13 ET (05:13 GMT)

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