CATL Targets $3.99B in Hong Kong's Largest IPO of 2025

Chinese EV battery giant Contemporary Amperex Technology Co. Ltd. (CATL) is aiming to raise HK$31.01 billion (US$3.99 billion) through a Hong Kong listing, marking the city’s largest IPO so far this year. According to its prospectus filed on Monday, CATL will offer 117.9 million shares at a maximum price of HK$263 each. If overallotment and adjustment options are exercised, the deal could grow to US$5.3 billion.

Over 20 cornerstone investors—including Sinopec and the Kuwait Investment Authority—have committed to buying about US$2.62 billion worth of shares. The offering will allocate 109.1 million shares to institutional investors and 8.8 million shares to retail investors.

Final pricing is expected by May 19, with trading set to begin on May 20 on the Hong Kong Stock Exchange. If priced at the upper limit, shares would trade at a slight discount to CATL’s Shenzhen-listed stock, encouraging demand.

The company was recently listed by the U.S. Defense Department as having links to China’s military, a claim CATL denies, calling it a “false designation.” While U.S. onshore investors are barred from participating, their offshore affiliates can still join.

CATL has emphasized that U.S. tariffs will have limited impact due to the small proportion of its business in North America. The firm is also working with automakers like Ford and Tesla by licensing its battery tech rather than directly manufacturing in the U.S., a move criticized by some American lawmakers.

The IPO comes amid easing tensions in U.S.-China trade talks, though high tariffs remain. CATL said it will continue monitoring evolving trade policies to assess potential risks.

This listing follows Midea Group’s US$4.6 billion raise last year, making CATL’s deal a major milestone in 2025's IPO landscape.