Contemporary Amperex Tech Plans Hong Kong Mega-IPO Amid Market Rally
Contemporary Amperex Technology Co. Ltd. (CATL), the world's leading electric vehicle battery manufacturer, has filed for a substantial initial public offering (IPO) in Hong Kong. This move is a significant development for the city's stock market, potentially marking the largest IPO in four years.
The highly anticipated filing comes during a surge in Hong Kong's stock market. According to Bloomberg News, CATL could raise over $5 billion, surpassing Kuaishou Technology's $6.2 billion listing in 2021.
CATL is expected to contribute significantly to Hong Kong's IPO recovery this year, with other mainland China-listed companies also considering secondary listings in the city. Hong Kong's IPO proceeds almost doubled in 2024 to approximately $10 billion, but remain below the pre-pandemic average of $30 billion.
CATL has appointed a syndicate of joint sponsors for the listing, including Bank of America Corp., China International Capital Corp., CSC Financial Co., and JPMorgan Chase & Co. Goldman Sachs Group Inc., Morgan Stanley, and UBS Group AG are among the arrangers for the share sale.
The EV battery giant intends to utilize the IPO proceeds to fund its European expansion, particularly in Hungary. The company's prospectus indicates that it has already invested 700 million euros towards a 100 gigawatt-hour factory in Hungary, with the remaining funds to be raised through the secondary listing.
Despite geopolitical tensions that could impact CATL's global expansion, the blockbuster IPO demonstrates investor confidence in the company's growth prospects. Last month, CATL was included on a US Defense Department list of companies allegedly linked to the Chinese military. While this does not impose specific sanctions, US companies may be discouraged from engaging with listed entities.
CATL's earnings surged by 20% last year, solidifying its dominance in the EV battery market. The company is poised to report record annual net income, despite a projected decline in sales for the first time since its 2015 financial disclosures.
In the third quarter of 2024, CATL accounted for over one-third of global battery shipments, according to SNE Research. This is more than double the market share of its nearest competitor, BYD Co. CATL supplies batteries to Tesla Inc. and numerous global automakers, including Stellantis NV and Volkswagen AG.
Currently listed on the Shenzhen stock exchange, CATL has a market capitalization of approximately $152 billion. Hong Kong's Hang Seng Index has gained 6% in 2025, continuing its recovery from the previous four years of declines.