CATL prepares to raise at least $5 billion in Hong Kong IPO

In China, the battery giant CATL is poised to initiate a listing in Hong Kong during the week of May 12, 2025. This significant event is anticipated to be the most substantial share sale in the metropolis since 2021, highlighting the importance of the offering in the financial landscape of Hong Kong. According to sources familiar with the transaction, the bookbuilding phase will commence soon, allowing investors to place bids for this equity offering. The initial aim is to raise upwards of $5 billion during this process, indicating strong market confidence in CATL's business potential. The intended financing will not only bolster CATL's operational capabilities but also support its ongoing expansion initiatives. Notably, part of the proceeds from this listing is earmarked for the construction of a cutting-edge battery plant located in Hungary, which has a projected investment value of approximately 7.3 billion euros or around $7.53 billion. The development of this plant is crucial for CATL as it aims to enhance its manufacturing capabilities and respond to the growing global demand for electric vehicle batteries. Despite the strategic timing and magnitude of the offering, there remain uncertainties regarding its execution. Sources have indicated that both the size and the timing of the bookbuilding process could undergo adjustments before the official launch. CATL has yet to officially comment on the specifics of the IPO, prompting some speculation regarding the corporation's broader market strategies and objectives. As the company continues to expand its foothold in both domestic and international markets, this move is likely to be scrutinized closely by industry stakeholders and investors alike. In summary, CATL's upcoming Hong Kong listing represents a critical milestone not just for the company itself, but for the equity market in the region, which has been in need of revitalization. The capital raised from this public offering is intended to support expansive growth projects and solidify CATL's standing as a global leader in battery manufacturing amid an increasingly competitive landscape for sustainable energy solutions.