CATL Pursues Hong Kong IPO, Aiming to Raise Up to $5.3 Billion

Unusual Restrictions on U.S. Investors
"Impact of U.S.-China Tensions"

On May 12, Bloomberg News and the South China Morning Post (SCMP) reported that CATL, the world's largest electric vehicle battery manufacturer based in China, is pursuing the largest IPO of the year on the Hong Kong Stock Exchange. Through this initial public offering (IPO), CATL is aiming to raise up to $5.3 billion (approximately 7.42 trillion KRW).

On the same day, CATL submitted a preliminary listing application to the Hong Kong Stock Exchange. The company plans to issue 117.9 million shares at up to HK$263 per share (approximately 47,285 KRW), totaling $4 billion. If the deal size is increased by 15%, 136 million shares will be issued, and if the overallotment option (greenshoe) is fully exercised, the total will reach 156 million shares, bringing the IPO size to a maximum of $5.3 billion.

Reuters Yonhap News

This surpasses JX Advanced Metals' $3 billion IPO on the Tokyo Stock Exchange in March, making it the largest IPO globally so far this year.

Cornerstone investors, including China's state-owned oil company Sinopec and the Kuwait Investment Authority (KIA), have agreed to purchase approximately $2.6 billion worth of shares and to hold them for at least six months.

CATL announced that this offering will be conducted under the so-called 'Regulation S' method. This restricts sales to investors in the United States and exempts the company from certain filing requirements with specific U.S. regulatory authorities. Bloomberg explained that this reflects how tensions between the U.S. and China are affecting IPOs. Previously, in March, the U.S. Department of Defense added CATL to its list of 'Chinese military companies.'

CATL plans to use about 90% of the new capital raised from this IPO for its plant in Hungary. According to SNE Research, CATL currently holds about 38% of the battery market.

By noon that day, CATL's share price on the Shenzhen Stock Exchange in China had risen by 2.6% to reach 254.69 yuan. Its market capitalization reached approximately $154.76 billion. The IPO price is expected to be determined as early as May 13, with trading on the Hong Kong Stock Exchange anticipated to begin on May 20.

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