CATL, China’s top EV battery maker, eyes global dominance with US$5 billion Hong Kong IPO

CATL, as the company is known, is eager to replenish its coffers through a first-time Hong Kong stock offering to bolster its business outside the mainland, as it jostles with competitors like LG Energy Solution to supply to the world’s biggest EV makers.

“Most of the company’s money is in Chinese yuan,” said Ding Haifeng, a consultant at Shanghai-based financial advisory firm Integrity. “A fundraising in Hong Kong will effectively reinforce its ambitions of becoming the undisputed champion of the world’s EV battery market.”

The Shenzhen-listed company had US$6.7 billion and €3.9 billion (US$4.04 billion) of cash in foreign currencies as of June 30 last year, according to its latest accounts.

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CATL, which filed its initial public offering (IPO) plan to the Hong Kong bourse on Tuesday, is said to be seeking at least US$5 billion from its deal, potentially the largest share sale in the city since Kuaishou Technology raised US$6.2 billion in January 2021. Proceeds will be for building factories overseas, where growth has slowed.

CATL’s successful secondary listing would see the company join the likes of Alibaba Group Holding, Nio, Baidu and many others from the mainland. Alibaba, which owns the Post, raised US$13 billion in 2019 from its secondary share sale in the city.