Contemporary Amperex Technology Co., Limited (CATL), the world's largest manufacturer of batteries for electric vehicles, has submitted its application for a secondary listing on the Hong Kong Stock Exchange. This move could mark one of the most significant stock listings the city has seen since 2021.
According to reports from Financial Times, CATL aims to secure up to $7 billion through its Hong Kong debut, with estimates from Morgan Stanley indicating the total could rise to $7.7 billion under favorable market conditions. The funds raised will primarily support CATL's international expansion efforts, which include the establishment of a factory in Hungary, creating a joint venture with Stellantis in Spain, and launching projects in Indonesia.
The listing process is being led by financial giants JPMorgan, Bank of America, CICC, and China Securities International, alongside Goldman Sachs, Morgan Stanley, and UBS. Interestingly, U.S. banks remain involved, even though CATL faces restrictions as it was placed on the U.S. blacklist for suspected ties to the Chinese military.
CATL remains the market leader, having dominated the global EV battery market for eight consecutive years with a 38% share as of 2024. Despite this, the company recently reported an 11% drop in revenue due to declining product prices, yet it still achieved over $50 billion in revenue last year, with its market capitalization on the Shenzhen Stock Exchange hovering around $150 billion.
The intention behind this listing is to engage long-term institutional investors, particularly those unable to invest directly in companies registered on the mainland. According to William Ma, founder of GROW Investment Group, the timing is auspicious for entering the international market, as investors are beginning to find Chinese assets increasingly appealing.
This listing could also diversify the Hong Kong stock market, which has largely focused on Chinese internet firms and banks. After three years of decline, IPO activity has started to rebound, with local exchanges attracting $10.65 billion through 63 deals last year, reflecting an 80% increase compared to 2023, as noted from Dealogic information.
Notably, the U.S. Department of Defense has added CATL to its list of Chinese military companies, limiting the U.S. military's ability to procure products from CATL as of June 2026. Although financial analysts from Macquarie suggest this will not significantly impact its revenue since CATL has limited dealings with American military suppliers, the company is actively seeking to challenge this designation.
CATL is making strides to extend its global footprint, managing 13 production facilities across the globe by September 2024. Concurrently, plans are underway for the establishment of new plants, including the construction of lithium iron phosphate battery facilities with Stellantis in Spain, valued at approximately $4.1 billion (€3.7 billion).
Despite reporting a revenue decline of 12% for the third quarter of 2024 compared to the same period last year, CATL remains optimistic, forecasting its net profit growth for the year to reach between 11% and 20%. This demonstrates CATL's confidence as it advances its goals for growth and innovation on the international stage.
With all these factors at play, CATL's upcoming listing is generating considerable attention and could represent not only growth for the company but also revitalization for Hong Kong's financial market.