CATL Gauges Interest for Potential $5 Billion HK Listing

Bloomberg
06 May

Contemporary Amperex Technology Co. Ltd., the world’s largest maker of batteries for electric vehicles, began gauging investor interest for a share sale that may fetch $5 billion and will probably be Hong Kong’s biggest listing in years.

CATL, as the Chinese electric-vehicle battery giant is known, launched its investor education meetings on Tuesday, according to terms of the deal seen by Bloomberg. Though the listing date is yet to be determined, people familiar with the matter have said the company could start taking orders as soon as in May.

The Shenzhen-listed company is barreling ahead with the offering in spite of US President Donald Trump’s tariffs having roiled global markets. Given its scale, the deal’s success will likely influence investor confidence in Hong Kong and Chinese companies, which have suffered amid all the market turmoil related to tariffs.

Chinese companies appeared to have shrugged off the trade war and powered on with share sales last month, while offerings in the US and Europe have slowed.

Separately, a US congressional committee in April called for Bank of America Corp. and JPMorgan Chase & Co. to withdraw from working on the planned listing. House Select Committee on the Chinese Communist Party Chairman John Moolenaar, in letters addressed to the two banks’ chief executive officers, highlighted the company’s inclusion in a Pentagon blacklist in January, citing its alleged links to the Chinese military.

Bank of America and JPMorgan are still working on the offering, according to CATL’s post-listing-hearing documents dated Tuesday. A CATL spokesperson has said the allegations in the letters are without merit and the company has never engaged in any military-related business or activities.

At $5 billion, CATL’s listing would be the world’s biggest since cold-storage real estate investment trust Lineage Inc.’s $5.1 billion deal last year, and Hong Kong’s largest since Kuaishou Technology’s $6.2 billion offering in 2021, according to data compiled by Bloomberg.

CATL in April reported a solid set of results for the first quarter, with net income growing at the fastest pace in nearly two years. Executives at CATL, a top supplier to Tesla Inc. and many other large automakers, described the impact of US tariffs as “little” and said the company’s US exposure was “quite small.”

CATL’s shares have fallen 13% this year in Shenzhen, compared with a 4.2% decline in the CSI 300 Index.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10