Shares of Contemporary Amperex Technology Co. Ltd (CATL), the world’s largest electric-vehicle battery manufacturer, surged 12.6% on Tuesday as it launched the biggest public offering globally so far this year. The secondary offering in Hong Kong has already raised at least $4.6 billion, with expectations to reach $5.3 billion if underwriters exercise their option to sell additional shares, according to a report by the Financial Times.
CATL, headquartered in Ningde, southeastern China, is a key supplier to Tesla, BMW, and Volkswagen. Founder Robin Zeng marked the trading debut by ringing the gong at the Hong Kong Stock Exchange, alongside Hong Kong’s financial secretary Paul Chan and Ningde’s deputy mayor. Zeng expressed the company’s ambition to move beyond being “just a battery component manufacturer” and become a pioneer of the zero-carbon economy.
The cash-rich company sought an offshore listing to raise non-renminbi funds for international expansion, notably a $7.3 billion manufacturing facility in Hungary. The deal attracted significant backing from American banks and asset managers, despite ongoing geopolitical tensions between China and the U.S.
Analysts suggest that the offering’s strong demand reflects a broader trend of global investors diversifying away from U.S. dollar-denominated assets. Jason Lui, BNP Paribas’ head of Asia-Pacific equity strategy, told the Financial Times that this combination of a renowned issuer and macroeconomic shifts created a “unique scenario” driving investor interest.
The offering was priced at the high end of HK$263 per share — just a 7% discount to CATL’s Shenzhen close price. This contrasts with typical “H-share” offerings in Hong Kong, which often trade at deeper discounts compared to mainland Chinese “A-shares.”
Cornerstone investors in the deal include Chinese oil giant Sinopec, Kuwait’s sovereign wealth fund, Asian private equity firm Hillhouse Investment, and U.S.-based Oaktree Capital Management, among others. However, some American investors reportedly delayed participation until after the listing to avoid increased scrutiny from Washington, where political concerns about Chinese capital market deals have intensified. A Republican lawmaker had previously called on JPMorgan Chase and Bank of America to stop involvement in the deal.
Because the listing was made under “Reg S” securities rules rather than the “144A” framework, many U.S. onshore investors without offshore accounts were excluded from participation. The lead bankers on the transaction were China International Capital Corporation and China Securities — both state-backed — alongside JPMorgan and Bank of America.
The listing also briefly influenced Hong Kong’s currency market, with investors purchasing Hong Kong dollars for the share subscription and speculators betting on the currency’s rise, prompting the Hong Kong Monetary Authority to intervene with nearly $17 billion in purchases to stabilize the exchange rate.
CATL’s successful debut underscores both the company’s global stature in the booming electric vehicle market and the complex geopolitics shaping capital flows between China and the West, as detailed in the Financial Times.
