Contemporary Amperex Technology Limited (CATL), the world’s largest producer of batteries for electric vehicles (EVs), said it received approval from authorities in mainland China to sell shares for the first time in Hong Kong.
The China Securities Regulatory Commission (CSRC) approved CATL’s fundraising plan to fund its global ambitions, the company said in a filing to the Shenzhen Stock Exchange late on Tuesday. CATL had proposed to sell up to 220.17 million shares without disclosing the price, according to its filing last month.
CATL could raise at least US$5 billion, according to some media reports, the largest initial public offering (IPO) since Kuaishou Technology’s US$6.2 billion jumbo deal in January 2021. The company said it would use the funds to build EV battery factories in overseas markets.
Chinese companies domiciled on the mainland must get the approval from the CSRC to raise capital offshore, including in Hong Kong and the US. The procedure was later simplified into a registration process, as the authorities in Beijing ended a 20-month freeze to enable businesses to recapitalise for growth in the post-Covid period.
CATL’s successful sale, called a dual primary listing, would see it join the likes of Alibaba Group Holding, Nio, Baidu and many others from the mainland. Alibaba, which owns the Post, raised US$13 billion from a secondary share sale in the city in 2019.
Based in Ningde in Fujian province, CATL raked in 110 billion yuan (US$15.1 billion) in 2024 sales from overseas, or 30 per cent of its total revenue, according to its exchange filing. In 2023, offshore businesses accounted for 32.7 per cent of the total. CATL’s 2024 revenue fell 9.7 per cent to 362 billion yuan.
Source: SCMP
