China’s CATL to raise at least US$5 billion in Hong Kong listing: sources

CHINESE battery giant CATL is expected to raise at least US$5 billion in a Hong Kong listing, according to two sources with direct knowledge of the matter.

CATL did not immediately respond to a request for comment from Reuters.

The biggest battery maker in the world filed an application to list on the Hong Kong Stock Exchange on Tuesday (Feb 11), saying part of the funds raised will be used to build its 7.3 billion euro (S$1.4 billion) battery plant in Hungary.

A listing of the Shenzhen-listed firm would be the largest listing in Hong Kong in four years, according to Dealogic data. At US$5 billion, it would be the biggest listing since Kuaishou Technology’s 2021 initial public offering that raised US$6.2 billion, the data showed.

The city’s equity capital markets have languished in the past three years as a result of Chinese regulators slowing down the approval process and volatile global financial markets.

CATL’s planned float in the Chinese offshore market comes amid rising geopolitical tensions as the US in January added Chinese tech companies including CATL and Tencent Holdings to a list of firms it says work with China’s military.

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CATL’s Hong Kong listing plan also comes as the city sees increased interest for second listings from Chinese A-share companies, which are seeking to tap into overseas liquidity.

CATL has a market capitalisation of 1.4 trillion yuan (S$260 billion) and its Shenzhen shares are trading about 61 per cent higher over the past year. REUTERS