CATL soars on HK debut, setting stage for more "A+H" listings
Chinese battery giant Contemporary Amperex Technology (CATL) saw its stock surge 16 percent on its Hong Kong market debut, following an initial public offering that raised US$4.6 billion, as the world's largest IPO so far this year.
The strong performance and rapid IPO, achieved in just 128 days with investors from 15 countries and regions, highlight the exceptional global demand for Chinese high-tech companies.
CATL's shares closed at HK$306.2 (US$39.25) on Tuesday, opening at HK$296 per share. This represents a 12.55 percent gain on its IPO price of HK$263. Meanwhile, its Shenzhen-listed shares closed up 1.15 percent at 263.00 yuan (US$36.52), 7.4 percent lower than the Hong Kong price.
"This listing signifies our deeper integration into the global capital markets and marks a new milestone in our mission to drive the global zero-carbon economy," Robin Zeng, chairman and CEO of CATL, said at the Hong Kong listing ceremony.
Currently, one out of every three electric cars on the road utilizes CATL batteries.
The successful dual-listing serves as a positive example for other domestically listed blue-chip companies, with consulting firm Rime predicting an increase in "A+H" (mainland and Hong Kong) listings this year.
CATL officials pose during the company's Hong Kong stock debut on Tuesday.
Hong Kong's Pivotal Role and Global Expansion
Despite media reports linking CATL to a Pentagon list of Chinese companies with military ties, major US financial institutions, including Bank of America, JPMorgan, Goldman Sachs and Morgan Stanley, proceeded to underwrite the listing.
CATL's Hong Kong debut comes amid a renewed risk appetite in global stock markets, driven by easing trade tensions, particularly between the United States and China.
This trend is also encouraging other Chinese companies to pursue IPOs in Hong Kong.
For instance, drugmaker Jiangsu Hengrui has officially launched its H-share public offering already, aiming to raise HK$13 billion, potentially making it the highest IPO record for a Hong Kong pharmaceutical company in the past five years.
Hong Kong's standing as an international financial center provides a crucial platform for CATL to support its expanding production capacity, supplier network, and talent pool. The company stated on Tuesday that this also facilitates more diverse cooperation with international partners, a vital step towards a zero-carbon future.
Previously, CATL revealed in its Hong Kong filing that 90 percent of the raised funds will be allocated to building its upcoming factory in Hungary. This facility is designed to supply batteries to major European automotive clients such as Stellantis, BMW, and Volkswagen.
CATL revealed next-generation batteries for trucks in Shanghai recently.
Industry Leader with Consistent Growth
"CATL is not just a battery component manufacturer; we are a systems solution provider and are committed to becoming a zero-carbon technology company," Zeng reiterated on Tuesday.
As a global leader in the sector, CATL produces over a third of all electric vehicle batteries sold worldwide, partnering with prominent brands like Tesla, Mercedes-Benz, BMW and Volkswagen. The company has demonstrated robust financial performance, with its net profit jumping 32.9 percent in the first quarter this year.
The booming Chinese EV companies are fuelling CATL's growth.
In January and February, China's new energy vehicle production, sales and exports grew by more than 50 percent year on year. In the period, China's production and sales of NEVs were 1.903 million and 1.835 million units, respectively, each surging 52 percent annually, triple the growth level of the overall automotive vehicle market, Xinhua news agency reported, citing industry association figures.
CATL first went public on the Shenzhen Stock Exchange in June 2018. For eight consecutive years, CATL's EV battery consumption volume has ranked No. 1 globally.
