CATL Shares Jump 16 Percent on Hong Kong Debut

Key highlights:

• CATL records a rise of 16 percent in its Hong Kong Debut
• CATL IPO in Hong Kong has raised to 35.7 Hong Kong Dollars
• CATL to construct new factory in Hungary with its Hong Kong funds

The world’s largest manufacturer of battery Contemporary Amperex Technology (CATL) share has risen up to 16 percent in its first Hong Kong trading debut, which happened on Tuesday. Tuesday shares had closed trading at 306.2 Hong Kong dollars. This shows the investors trust upon the company’s ability, amid the boom in electronic vehicles.

According to the company’s filing, the IPO of the company raised up to Hong Kong Dollars 35.7 billion, making it the largest offering this year globally. But the company stock exchange rate has dropped to the rate of 1.15 percent at 263 Chinese Yuan, in mainland China’s Shenzhen stock exchange. Senior research analyst at Bernstein, Neil Beveridge said, “I think that as the Hong Kong shares continue to perform strongly, that will pull up the Mainland China shares. For the Hong Kong share to be trading above the A share just shows how exceptional the demand is for this company, particularly from global investors.”

CATL will be building a new factory in Hungary with its 90 percent raised fund in Hong Kong. This factory will be supplying batteries to European automotive clients which will include Stellantis, BMW, and Volkswagen. This move comes after the US-China trade war. The company had extended its operation amid the entry of China’s leading EV maker BYD. According to the Founder and CEO of investment advisory firm Automobility, Bill Russo, this trade-off war will complicate the company’s US-related business.

The previous year annual revenue of the company had recorded a drop of 9.7 percent, due to the intense competition in China's EV market.