Shares of CATL debut in Hong Kong on Might 20, 2025.
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Shares of the world’s largest battery producer Modern Amperex Know-how rose over 18% of their Hong Kong buying and selling debut on Tuesday, as traders guess on the corporate’s capability to journey the growth in digital automobiles.
Shares have been final buying and selling up at 308 Hong Kong {dollars} apiece on the Hong Kong inventory trade, in contrast with the preliminary public providing value of HK$263 {dollars} per share.
CATL IPO raised HK$35.7 billion ($4.6 billion) based on a firm submitting, reportedly making it the largest world itemizing in 2025. CATL shares, which had opened decrease on mainland China’s Shenzhen inventory trade, reversed course to rise 1.5% to 264 Chinese language yuan.
“I believe that because the H [Hong Kong] shares proceed to carry out strongly, that may pull up the A [mainland China] shares,” Neil Beveridge, senior analysis analyst at Bernstein, instructed CNBC’s “The China Connection.”
“For the H shares to be buying and selling above the A shares simply reveals how distinctive the demand is for this firm, notably from world traders,” he added.
CATL stated in its Hong Kong submitting that 90% of the funds raised will go towards constructing its upcoming manufacturing unit in Hungary, aimed toward supplying batteries to European automotive shoppers together with Stellantis, BMW and Volkswagen.
“Europe is an exceptionally necessary marketplace for CATL,” stated Beveridge, including that the corporate’s development in China was going to gradual over the approaching years as a result of already excessive gross sales penetration. “Europe’s solely at about 20-25% [sales] penetration, so there’s nonetheless a whole lot of development there to return,” he added.
The corporate’s world push has coincided with expansions from main Chinese language EV makers equivalent to BYD. Nevertheless, these efforts hit a pace bump final 12 months when the U.S. and EU positioned punitive tariffs on EVs made in China, citing unfair commerce practices.
The corporate additionally discovered itself within the crosshairs of U.S.-China commerce tensions earlier this 12 months, with the Pentagon putting it on a watchlist in January over suspected hyperlinks to China’s navy — allegations the corporate has rejected.
In March, CATL posted a 9.7% drop in its 2024 annual income, hit by intense competitors in China’s electric-vehicle market that pressured the world’s high battery producer. Nonetheless, the corporate’s internet revenue went up by 15% 12 months over 12 months.
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Demand for electrical automobiles in China, a essential marketplace for CATL, gained momentum final 12 months on the again of a mix of subsidies and shopper buy incentives. EV gross sales in China surged to 11 million in 2024 — a 40% enhance in comparison with the earlier 12 months, knowledge from U.Okay. analysis agency Rho Movement confirmed.
“We’re a giant believer and investor in CATL in our world EV technique. It is simply phenomenal, it is a ‘should personal firm,’ for my part, together with BYD for traders within the area,” stated Brendan Ahern, chief funding officer at KraneShares.
Financial institution of America, China Worldwide Capital Company, Goldman Sachs, Morgan Stanely, JPMorgan Chase have been the joint lead mangers for the Hong Kong providing.
Talking on CNBC’s Squawk Field Asia on Tuesday, Andy Maynard, managing director and head of equities at China Renaissance, stated that the CATL’s IPO reveals that traders nonetheless look to China to seek out high quality performs regardless of latest commerce tensions between Beijing and Washington.
Correction: This story was revised to precisely mirror the soar in shares at market open.
