CATL's Hong Kong IPO Draws Massive Investor Interest, Set to Raise Up to $5.3 Billion

Contemporary Amperex Technology Co. Limited (CATL), China's battery manufacturing giant, launched its highly anticipated Hong Kong IPO subscription period today, attracting extraordinary investor interest with rapidly increasing subscription amounts.

According to data from JeeLee Trading, as of 10:10 AM on May 14, CATL's margin financing subscription has reached nearly 61 times oversubscription, with total margin financing climbing to approximately HK$141.8 billion.

Additionally, Tencent News "Frontline" reports that as of May 14, CATL has received institutional orders exceeding $50 billion, equivalent to about HK$390.2 billion. The report indicates that virtually all institutional investors in Central Hong Kong have participated in CATL's offering, with state-owned enterprises showing notably increased interest—one state-owned institution placed an order exceeding $100 million after recent direct communication with CATL's listing team.

source: CATL

In total, retail and institutional subscription amounts have reached a staggering HK$532 billion.

CATL officially launched its offering on May 12, planning to issue approximately 118 million H-shares globally. Of these, 8.8421 million shares (7.5%) are allocated to Hong Kong investors, while approximately 109 million shares (92.5%) are designated for international placement.

At the offering price of HK$263 per share, CATL's Hong Kong IPO is set to raise approximately HK$31 billion ($4 billion). According to CATL's plan, about 90% of the proceeds will fund the construction of phases one and two of its Hungary project, with the remaining 10% allocated to working capital and other general corporate purposes.

Based on a March conference call, construction of CATL's first phase Hungary plant is accelerating, with building structures completed and facility installation underway. The module production line is expected to commence operations this year, while battery cell production is scheduled for the second half of 2025. The second phase has received relevant approvals and preliminary preparations are underway, with construction set to begin in 2025.

The prospectus reveals that CATL's Hong Kong IPO has attracted 23 cornerstone investors collectively subscribing to approximately $2.628 billion. Sinopec (Hong Kong) Limited, Kuwait Investment Authority (KIA), and Hillhouse Capital-affiliated institutions are the largest subscribers, committing $500 million, $500 million, and $200 million respectively. Other cornerstone investors include Shanghai Gaoyi, Shanghai Greenwoods, Gaoyi Asset Management, Hong Kong Greenwoods, UBS Asset Management, Oaktree Capital, Mirae Asset, China Pacific Insurance, Luoyang Science and Technology Innovation, China Post Wealth Management, and Taikang Life Insurance among other prominent institutions.

Notably, beyond the publicly offered 118 million shares, if the 15% over-allotment option is exercised, CATL's financing could increase to $4.6 billion. Tencent News "Frontline" further reports that CATL has an additional 17.7 million shares authorized for sale plus 17.7 million green shoe options. If both additional authorizations are utilized, CATL's total fundraising could expand to HK$41 billion, potentially making it the largest global IPO by amount raised this year.

The subscription period is scheduled to end on May 15, with results announced on May 19 and official listing on May 20. If the final fundraising amount reaches HK$41 billion, CATL's Hungary factory will likely accelerate toward production, further enhancing the company's competitive position in the European market.

From 2021 to 2024, CATL's European power battery market share has consistently grown from 17% to 38%, maintaining its number one position. In the first quarter of this year, CATL achieved year-on-year growth in power battery sales volume in the European market, continuing to increase its market share and widen the gap with its closest competitor.