CATL gets China’s sign-off to proceed with Hong Kong share sale

[HONG KONG] Contemporary Amperex Technology Co, Limited(CATL) has received China’s approval to proceed with a potentially blockbuster share sale in Hong Kong.

CATL, as the world’s top electric vehicle (EV) battery maker is known, said on Tuesday (Mar 25) it had been given the green light from the China Securities Regulatory Commission to issue as many as around 220 million shares, according to a statement. The company could raise at least US$5 billion, Bloomberg News reported last month.

The listing would add to Hong Kong’s recent flurry of jumbo-sized share sales, with smartphone-to-EV company Xiaomi and EV maker BYD raising more than US$11 billion just this month. Stock sales in the Chinese territory have raised more than US$15 billion so far this year, compared with US$18.6 billion in all of 2024, according to data compiled by Bloomberg.

China’s securities regulator has since early 2023 required Chinese firms seeking to sell shares abroad to get its blessing. CATL, whose shares already trade in Shenzhen, can now proceed with its second listing, pending additional nods from Hong Kong’s Securities and Futures Commission and the stock exchange.

After years of slumping share prices, the benchmark Hang Seng Index has turned into one of the world’s best performers, prompting companies to capitalise on the rally by raising funds through stock offerings. Investors are also showing a renewed interest in Chinese deals after shunning them for the last few years.

CATL’s listing also comes against the background of rising geopolitical tensions, which may endanger the battery maker’s global expansion. The company earlier this year was added to a US Defense Department list of firms with alleged links to the Chinese military. While inclusion does not carry specific sanctions, US businesses could be discouraged from dealing with the companies on the list.

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The Ningde, Fujian-based company’s shares in Shenzhen have fallen 2.5 per cent this year. The company, which filed its listing application in Hong Kong last month, has a market value of more than US$157 billion. BLOOMBERG