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Contemporary Amperex Technology (CATL), the world’s largest EV battery manufacturer, is pressing ahead with a highly anticipated Hong Kong listing, potentially marking the city’s biggest IPO in over four years. The Chinese company filed its draft application with the Hong Kong stock exchange following board approval in December. While the exact IPO size and timeline remain undisclosed, reports suggest a potential $5 billion offering, which would be the largest since Kuaishou Technology’s $6.2 billion IPO in early 2021.
The listing aligns with CATL’s broader strategy to expand its global footprint and strengthen its position in the EV supply chain. “CATL is eyeing higher profitability by accelerating its overseas presence,” noted Davis Zhang of Suzhou Hazardtex. With a 37% share of the global EV battery market, CATL has been the industry leader for eight consecutive years, supplying major automakers like Tesla and BMW. Despite this dominance, its stock price has experienced volatility, dropping 2.6% in Shenzhen ahead of the IPO announcement.
As part of its international expansion, CATL has committed significant investments to Europe, including a €240 million battery factory in Germany and a planned facility in Spain through a joint venture with Stellantis. These moves come as Chinese EV manufacturers look to counteract trade barriers imposed by the US and EU. The company, however, has faced political scrutiny, including being added to a US government watchlist over alleged ties to the Chinese military—claims that CATL has denied.
With the EV battery market projected to nearly quadruple by 2030, CATL remains optimistic about its growth potential. The company’s 2024 net income is expected to rise by 20% to 53 billion yuan, reflecting increased battery production and global demand. Hong Kong’s IPO market is seeing renewed activity, with nearly 100 companies in the pipeline. If successful, CATL’s listing could signal a strong rebound for the city’s financial sector while positioning the battery giant for its next phase of global expansion.
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(Source: Automotive News | Financial Times)
