The CATL Hong Kong IPO 2025 opened with a strong performance, as shares surged 16.4% on the first day of trading. This marked the largest equity listing globally so far this year and revived hopes for Chinese companies eyeing offshore capital.
Shares in Contemporary Amperex Technology Co. Ltd. (CATL) closed at HK$306.20, up from the offer price of HK$263, on the Hong Kong Stock Exchange on May 20, 2025. The stock peaked at HK$311.40 during trading and outperformed the Hang Seng Index, which rose 1.5% that day.
Despite heightened geopolitical tensions and a slowing Chinese economy, investor demand remained strong. CATL raised $4.6 billion, with the potential to reach $5.3 billion if the green shoe option is fully exercised. That would make it the largest Hong Kong IPO since Kuaishou’s $6.2 billion debut in 2021, according to LSEG data.
The institutional tranche was oversubscribed 15.2 times, while the retail portion was 151 times oversubscribed. Investors from around the world—including U.S.-based offshore accounts—participated, even as CATL remained on the U.S. Department of Defense watch list.
In its prospectus, CATL stated that it is working with U.S. authorities to dispute the “false designation” and reaffirm its global business credentials. This commitment likely helped attract a wide range of buyers.
Robin Zeng, CATL’s founder and chairman, expressed optimism at the listing ceremony, saying, “This listing marks a new beginning for our global capital market journey and supports our vision of a zero-carbon economy.”
Expansion Strategy and Global Demand
Funds raised through the CATL Hong Kong IPO 2025 will largely support offshore expansion, particularly the construction of a battery plant in Hungary. This facility will supply major automakers like BMW, Stellantis, and Volkswagen across Europe.
The IPO’s success also sends a strong signal to other A-share companies in mainland China. According to Bonnie Chan, CEO of Hong Kong Exchanges and Clearing, over 40 firms are exploring secondary listings in Hong Kong. She emphasized that the exchange offers a vital offshore fundraising platform, especially amid global capital shifts.
Wang Shuguang, a senior executive at China International Capital Corp (CICC), noted that CATL’s offering could help revive Hong Kong’s capital markets. CICC co-sponsored the listing alongside JPMorgan, Bank of America, and China Securities International.
Market Timing and Trade Truce Effect
Interestingly, the IPO bookbuilding process began on May 12, the same day the U.S. and China announced a 90-day trade truce. This timing provided additional momentum, as several long-only global investors—previously hesitant—entered the market following the announcement.
Two sources close to the deal confirmed that demand was already high before the truce, with the offering fully covered through pre-commitment orders. The tariff pause encouraged even more participation, especially from institutional investors seeking growth opportunities in China’s electric vehicle (EV) sector.
Despite restrictions on U.S.-based onshore accounts, offshore entities still found a way in. Many U.S. investors brushed aside concerns over trade tensions and defense blacklists, showing confidence in CATL’s fundamentals.
Global Leadership in EV Batteries
CATL has extended its lead as the world’s top EV battery producer, growing its global market share from 36% in 2023 to 38% in 2024, based on SNE Research data. The company’s dominance is driven by its innovation, large-scale manufacturing, and global partnerships.
With $7.73 billion raised from Hong Kong IPOs and secondary listings so far this year—compared to just $1.05 billion during the same period in 2024—CATL’s success could pave the way for a rebound in Asia’s public markets.
