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CATL Eyes $5 Billion Secondary Listing in Hong Kong
Electric vehicle battery manufacturer Contemporary Amperex Technology Co Ltd (CATL) is reportedly contemplating a secondary listing in Hong Kong, a move that could potentially raise over $5 billion. This information comes from a Thursday report by Bloomberg, which cites sources familiar with the situation.
A successful listing would represent Hong Kong’s largest equity offering since the beginning of 2021, according to the report. CATL is recognized as one of the primary battery suppliers for Tesla Inc, further validating its significance in the electric vehicle industry.
Current discussions indicate that CATL is in the process of engaging with potential advisors for this listing, which could take place in the first half of 2025. If it goes through, this listing could surpass the previous record set by Midea Group Co, which raised $4.6 billion in September, marking the largest share sale in the city since Kuaishou Technology’s impressive $6.2 billion during the same year.
While plans are progressing, sources indicate that discussions are still ongoing and may evolve, with approval from China’s securities regulator being a prerequisite for any listing. CATL, currently listed on the Shenzhen stock exchange, boasts a market capitalization of approximately 1.2 trillion yuan, equivalent to $164 billion.
A secondary listing in Hong Kong would not only highlight CATL’s aspirations for international expansion but also leverage the city’s recovering equity markets. Despite this, CATL’s shares on the Shenzhen exchange experienced a 1% decline, consistent with broader trends in the Chinese market.
Should the proposed listing realize the projected $5 billion target, it would further cement CATL’s status as a pivotal entity within the global electric vehicle supply chain, reinforcing its dominance in the battery industry.
Source
www.investing.com