by Zhuang Jian

On December 26, Contemporary Amperex Technology Co., Ltd. (CATL) announced plans to issue foreign-invested shares and list on the main board of the Hong Kong Stock Exchange. The listing, capped at 5 percent of total share capital with an over-allotment option of up to 15 percent, aims to raise funds for international expansion, overseas project development, and operating capital. Reports suggest the listing could generate at least $5 billion (approximately 36.5 billion yuan).

Overseas markets contribute more than 30 percent of CATL’s revenue. The company has heavily invested in global production capacity, including three overseas battery plants: a 30.8 billion yuan joint venture in Spain with Stellantis, and factories in Germany and Hungary, with the Hungarian facility exceeding 50 billion yuan in investment.

CATL leads the global battery market with 252.8 GWh installed from January to October 2024, capturing a 36.8 percent market share. Despite a 12percent year-on-year revenue decline in the first three quarters, net profit rose 15.6 percent to 36 billion yuan, supported by 264.7 billion yuan in cash reserves as of September 30.

Other Chinese lithium battery firms, including China Aviation Lithium Battery (CALB) and Rept Battero Energy, are already listed in Hong Kong, with ZEnergy applying in July 2024. The Hong Kong Stock Exchange remains a global IPO hub, raising HK$79 billion in 2024, up 70.6 percent year-on-year.

CATL’s Shenzhen-listed shares closed at 261.25 yuan on December 26, down 2.51%, with a market value of 1.15 trillion yuan.