By Jiahui Huang

Chinese battery maker Contemporary Amperex Technology's share price continued its rally and rose sharply after the company fully exercised its over-allotment option, reflecting strong interest of global investors.

Shares rose 6.1% at 325 Hong Kong dollars in Wednesday afternoon trading. Its Shenzhen-listed shares gained 4.2% to 274.08 yuan.

The gains came after the company said late Tuesday that it had fully exercised its over-allotment option for 20.3 million H-shares, representing around 15% of total shares it offered globally in its Hong Kong debut.

The additional net proceeds of around HK$5.3 billion, equivalent to $677.1 million, from the over-allotment option will be mainly used for its factory in Hungary, among other uses.

Morningstar analysts wrote in a note that the successful debut of CATL's H-shares shows strong investor interest in the company. However, they also noted that geopolitical risks could weigh on sentiment and may add pressure its long-term competitiveness.

CATL's Hong Kong-listed shares closed 16% higher on its debut Tuesday, marking the world's largest equity offering so far this year.

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

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

Write to Jiahui Huang at jiahui.huang@wsj.com

(END) Dow Jones Newswires

May 21, 2025 03:33 ET (07:33 GMT)

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