Hong Kong: Chinese battery powerhouse CATL has secured key banking partners, including JPMorgan, Bank of America, China International Capital Corp (CICC), and China Securities Co. (CSC), for its upcoming Hong Kong float. This could become one of the largest offerings in the city in 2025, according to sources familiar with the deal.
While the exact size of the offering is yet to be determined, industry insiders suggest that the potential float could reach into the billions of dollars, aligning with CATL’s market cap of $150 billion as of Monday’s close. However, the sources, who spoke on condition of anonymity due to the confidential nature of the deal, did not specify the exact figure.
CATL, headquartered in Shenzhen, has reportedly set its sights on a listing in the first half of 2025. The move comes amid mounting geopolitical tensions, particularly with the United States, which recently added CATL and other Chinese tech giants to a list of companies it accuses of working with China’s military. This marks a significant period of shifting market dynamics for CATL, as the company continues to dominate the electric vehicle (EV) battery sector.
This Hong Kong float is expected to further capitalize on the increasing interest in second listings from Chinese companies listed on mainland A-shares, as they seek greater access to overseas capital. Sources revealed that the Hong Kong Stock Exchange has been working with banks to expedite these secondary listings.
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The company had previously planned to raise at least $5 billion through Swiss global depository receipts (GDRs) in 2023. However, the plan was eventually abandoned after Beijing regulators expressed concerns about the size of the offering.
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Despite this setback, the Hong Kong listing remains a pivotal move for CATL as it continues to expand its global footprint in the rapidly growing EV and energy storage markets.
