Shares in Chinese battery leader CATL jumped almost 14% during today's Hong Kong trading debut, following a US$4.7 billion initial public offering (IPO) - the world’s largest so far this year.
Contemporary Amperex Technology's (CATL) is the biggest producer of electric vehicle (EV) batteries by far, supplying over a third of the world (37.5%).
Find out more: No US investment: US$4.7bn CATL IPO on HKSE leads 2025
The company has benefited over the years from China’s booming domestic EV market and partnerships with major automakers such as Tesla, Mercedes-Benz, BMW and Stellantis.
Having already listed in Shenzhen, China, CATL announced plans for a secondary listing on the HKEX in December.
In early trading, its shares surged to HK$299.80, up 13.7% from its IPO price of HK$263.
Incepted in 2011, CATL, led by founder Robin Zheng, has thrived with strong government backing as Beijing bolsters its strategic high-tech industries, navigating a fierce price war in China’s competitive EV sector, where smaller rivals have often struggled to stay profitable.
Financials
CATL’s Q1 net profit soared 32.9%, with revenue rising 6.2% year-on-year to 84.7 billion yuan (US$11.7 billion).
Funds will be used to increase its exposure to Europe, with the battery giant constructing its second European plant in Hungary after opening its first in Germany in early 2023.
The more than US$1 trillion market-capped battery giant has partnered with Stellantis to build a $4.6 billion EV battery factory in Spain - set to begin production by late 2026 - and the new plant it's constructing is near BMW's new flagship car manufacturing facility in Hungary.
The blockbuster listing is a boon for the Hong Kong stock exchange, which has seen a slump in major Chinese IPOs since Beijing’s regulatory crackdowns in 2020.
