'IPO Giant' Chinese Battery Company CATL... Secures Funding Ammunition

Competition in Electric Vehicle and Battery Sectors Expected to Intensify

Exterior view of CATL headquarters located in Jiaocheng District, Ningde City, Fujian Province, China / AFP News Agency · Yonhap News Agency

Chinese battery manufacturer Ningde Shidai (CATL) has received approval from Chinese securities authorities for its Hong Kong stock market listing, heralding the emergence of a major initial public offering (IPO). The amount of funds CATL is expected to raise is anticipated to exceed 7 trillion won. As China's electric vehicle and battery industries continue to secure 'ammunition' through stock market listings, there are also expectations that competition within the industry will intensify.

On the 26th (local time), according to US-based Reuters and Bloomberg News, CATL, the world's largest electric vehicle battery manufacturer already listed on the Chinese stock market, announced yesterday that it has obtained approval from the China Securities Regulatory Commission to issue approximately 22 million shares in Hong Kong.

Although the exact scale of the listing has not yet been disclosed, sources predict that it will raise more than 5 billion dollars (approximately 7.3 trillion won). This would be the largest scale in four years since 2021 based on the Hong Kong Stock Exchange standards. Last month, CATL applied for listing on the Hong Kong Stock Exchange and stated that part of the funds raised would be used to build a battery factory in Hungary worth 7.3 billion euros (approximately 11.5 trillion won).

Xiaomi and BYD have also recently succeeded in raising large-scale funds through the Hong Kong stock market. China's number one electric vehicle manufacturer BYD raised 5.6 billion dollars (approximately 8.2 trillion won) through a rights issue on the 4th, and Xiaomi announced on the 24th that it would raise 5.5 billion dollars (approximately 8 trillion won) through stock sales. Kina Wong, an analyst at Citigroup, evaluated Xiaomi's fundraising in a report, stating, "Considering debt reduction, AI-related research and development, and potential for expanding electric vehicle production capacity, there will be positive long-term effects."

Meanwhile, the Hang Seng Index in Hong Kong, which had been sluggish in recent years, has risen more than 15% this year. The capital raised by Hong Kong-listed companies through the stock market in the first quarter reached 13.1 billion dollars (approximately 19.1 trillion won), marking the highest level since the second quarter of 2021. As China set its economic growth target around 5% this year, and President Xi Jinping unusually held a meeting with private technology companies last month emphasizing the role of private enterprises, this is also seen as having contributed to the recovery of corporate investment sentiment.

This content was produced with the assistance of AI translation services.