Contemporary Amperex Technology (CATL) experienced an 18% rise in its Hong Kong trading debut after raising HK$35.7bn ($4.6bn) in an initial public offering (IPO).
This increase reflects investor confidence in CATL’s potential to capitalise on the electronic vehicle boom.
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The shares were traded at HK$308, up from the initial public offering price of HK$263.
CATL’s IPO is reported to be the largest listing made in 2025 globally.
On the Shenzhen stock exchange, CATL shares initially opened lower but reversed course to rise 1.5% to 264 Chinese yuan.
Bernstein senior research analyst Neil Beveridge told CNBC’s The China Connection that: “I think that as the H [Hong Kong] shares continue to perform strongly, that will pull up the A [mainland China] shares.
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By GlobalData“For the H shares to be trading above the A shares just shows how exceptional the demand is for this company, particularly from global investors.”
The company plans to allocate 90% of the funds raised to building a new factory in Hungary.
The Hungarian factory will be used to supply batteries to European automotive clients, including Stellantis, BMW, and Volkswagen.
CATL also encountered US-China trade tensions, with the Pentagon placing it on a watchlist in January over alleged military links, which CATL denies.
Despite a 9.7% drop in 2024 revenue due to competition in China’s EV market, CATL’s net profit increased by 15% year over year.
Demand for EVs in China, a crucial market for CATL, surged last year, driven by subsidies and consumer incentives.
EV sales in China reached 11 million in 2024, a 40% increase from the previous year, according to UK research firm Rho Motion.
Bank of America, China International Capital Corporation, Goldman Sachs, Morgan Stanley, and JPMorgan Chase were the joint lead managers for the Hong Kong offering.
Andy Maynard, managing director and head of equities at China Renaissance, commented on CNBC’s Squawk Box Asia that CATL’s IPO demonstrates investor interest in China despite trade tensions.
In April, CATL introduced new battery products, highlighting its entry into the “multi-power era”, marking a significant advancement for the company.
