China's CATL Gains14% in Hong Kong IPO Launch Riding EV Surge

Contemporary Amperex Technology, the world's largest battery manufacturer, saw its shares rise up to 14% in their Hong Kong debut on Tuesday.

Key Highlights

The IPO raised HK$35.7 billion ($4.6 billion), according to a company filing, making it the largest global listing in 2025.

CATL stated in its Hong Kong filing that 90% of the funds raised will go toward the construction of its upcoming factory in Hungary.

In contrast to the initial public offering price of HK$263 per share, shares were last trading up 13% at 298 Hong Kong dollars each on the Hong Kong stock exchange.

According to a company filing, the CATL IPO raised HK$35.7 billion ($4.6 billion), making it the biggest international listing of 2025. CATL shares on mainland China's Shenzhen Stock Exchange were down 0.5% to around 260 Chinese yuan.

"I think that as the H [Hong Kong] shares continue to perform strongly, that will pull up the A [mainland China] shares," Neil Beveridge, senior research analyst at Bernstein stated.

"For the H shares to be trading above the A shares just shows how exceptional the demand is for this company, particularly from global investors," he said.

90% of the money raised will go toward building a factory in Hungary that will supply batteries to European automakers like Stellantis, BMW, and Volkswagen, according to CATL's Hong Kong filing.

"Europe is an exceptionally important market for CATL," Beveridge stated, adding that because of its already high sales penetration, the company's growth in China would slow in the upcoming years. "Europe's only at about 20-25% [sales] penetration, so there's still a lot of growth there to come," he stated.

Major Chinese EV manufacturers like BYD have expanded at the same time as the company's global push. However, due to unfair trade practices, the United States and the European Union imposed punitive tariffs on Chinese-made electric vehicles last year, hindering these efforts.

The Pentagon put the company on a watchlist in January due to alleged ties to China's military, which the company has denied, putting it in the crosshairs of US-China trade tensions earlier this year.

In March, CATL announced a 9.7% decline in 2024 revenue, citing pressure on the world's leading battery manufacturer from fierce competition in China's electric vehicle market. Still, the company's net profit increased by 15% year on year.

Demand for electric vehicles in China, a key market for CATL, increased last year due to a combination of subsidies and consumer purchase incentives. According to data from U.K. research firm Rho Motion, EV sales in China will surge to 11 million in 2024, a 40% increase from the previous year.

"We are a strong supporter and investor in CATL's global EV strategy. Brendan Ahern, chief investment officer at KraneShares, said, "It's just phenomenal; it's a'must own company,' in my opinion, alongside BYD for investors in the space."

Andy Maynard, managing director and head of equities at China Renaissance, said the CATL IPO demonstrates that investors continue to look to China for quality plays, despite recent trade tensions between Beijing and Washington.