According to Bloomberg, sources familiar with the matter revealed that Chinese electric vehicle battery manufacturer CATL (Contemporary Amperex Technology Co. Ltd.) is considering a secondary listing in Hong Kong. The move could raise at least $5 billion, potentially making it Hong Kong's largest listing since early 2021. It is reported that CATL is currently in discussions with potential advisors and could list as early as the first half of 2025.
However, the sources emphasized that CATL is still in the evaluation stage and has not made a final decision. As a result, the secondary listing plan in Hong Kong could change. Additionally, the secondary listing would still require approval from Chinese securities regulators.
Johnson Wan, an analyst at Jefferies Hong Kong Ltd., commented: "CATL's plan to raise $5 billion through a secondary listing in Hong Kong and issue dollar-denominated convertible bonds would provide the company with dollar-denominated revenue to support its accelerated overseas expansion. If CATL lists in Hong Kong, I expect strong interest from foreign long-only investors."
A CATL representative declined to comment on the report.
Headquartered in Fujian Province in southeastern China, CATL is currently listed on the Shenzhen Stock Exchange with a market capitalization of RMB 1.2 trillion (approximately $164 billion). The company's stock price has risen 65% this year, driven by a significant market rally at the end of September following government stimulus measures.
Since the beginning of this year, Hong Kong's Hang Seng Index has risen by approximately 15%, ending a four-year downward trend. Notably, Hong Kong's largest IPO in history was conducted by AIA Group Ltd. in 2010, raising over $20 billion.
In September this year, Midea Group Co. raised $4.6 billion through its IPO in Hong Kong, marking the largest stock issuance in Hong Kong since Kuaishou Technology raised $6.2 billion in early 2021. Shares of Midea Group in Hong Kong rose nearly 40% within three months of listing.
