CATL Eyes $5 Billion Hong Kong Listing with Modest Discount to Shenzhen Shares

Chinese battery giant Contemporary Amperex Technology Co. Ltd. (CATL) is preparing for a major Hong Kong listing to raise approximately $5 billion, potentially marking the city’s largest new share sale in four years. According to three sources familiar with the matter, the offering price is expected to be set at a discount of less than 10% compared to CATL’s Shenzhen-listed shares, with two indicating a mid-single-digit percentage discount.

CATL is currently engaging with institutional investors ahead of next week’s book building phase. The company is seeking cornerstone and anchor investors to purchase about half of the shares in the offering, a strategy often used to boost confidence in large-scale IPOs.

The pricing of the deal has not yet been finalized, and CATL has not issued an official comment. The sources requested anonymity as the details are not yet public.

This Hong Kong secondary listing comes amid growing global demand for electric vehicle (EV) batteries and heightened interest in China’s new energy sector. CATL, a key battery supplier for major automakers like Tesla and BMW, aims to leverage the capital raised to expand production and strengthen its global footprint.

The anticipated listing also reflects a broader trend of Chinese firms seeking to tap offshore capital markets amid domestic regulatory shifts. CATL’s move could help revive investor appetite in Hong Kong's equity market, which has seen subdued IPO activity in recent years.

The company showcased its latest technologies at the Auto China 2024 event in Beijing, underscoring its innovation and leadership in lithium-ion battery development. As one of the world's largest EV battery manufacturers, CATL’s Hong Kong listing is poised to attract significant global investor interest.