Chinese battery giant CATL is poised to raise at least HK$31.01bn ($3.99bn) in a Hong Kong listing.
The EV battery manufacturer plans to offer 117.9 million shares at a maximum price of HK$263 each.
The listing could potentially swell to around $5.3bn if additional options are exercised.
The announcement saw CATL's Shenzhen shares climb 3.6%, surpassing the CSI300 index's 0.9% rise.
This listing marks Hong Kong's largest since Midea Group's $4.6bn raise last year.
Sinopec and Kuwait Investment Authority, along with over 18 cornerstone investors, have committed to purchasing approximately $2.62bn in shares.
The offering includes an option to expand the share count by 17.7 million, potentially raising an extra HK$4.65bn ($598m).
A greenshoe option could see a further 17.7 million shares sold.
Pricing is expected between Tuesday and Friday, with the final price to be revealed by 19 May.
Approximately 90% of the proceeds, equating to HK$27.6bn, are earmarked for CATL's new Hungary factory, aiming to supply European automakers like BMW, Stellantis, and Volkswagen.
The first production phase is set to commence this year, with the second phase's construction starting later.
The Hong Kong shares will be priced at a slight discount to the Shenzhen stock if set at HK$263 each.
The prospectus also notes a waiver from the Hong Kong Stock Exchange, allowing CATL to forgo publishing a minimum sale price to avoid affecting its Shenzhen-listed stock.
The offering allocates 109.1 million shares to institutional investors and 8.8 million for Hong Kong retail investors.
Trading on the Hong Kong Stock Exchange is slated to begin on 20 May.
US onshore investors are restricted from the Hong Kong deal due to CATL's placement on a US Defense Department list of companies allegedly linked to China's military. However, CATL has stated it is addressing this 'false designation'.
CATL said in its prospectus reported Reuters: "It does not restrict us from conducting business with entities other than a small number of US governmental authorities, thus is expected to have no substantial adverse impact on our business.”
This listing coincides with US-China talks in Geneva aimed at de-escalating trade tensions, though high tariffs on goods from both nations remain in effect.
CATL's prospectus added: "Tariff policies have been rapidly evolving. Currently, we cannot accurately assess the potential impact of such policies on our business, and we will closely monitor the relevant situation."
