Shares in China’s CATL bounce over 11% in Hong Kong debut as battery maker rides electric-vehicle increase

Shares of the sector’s biggest battery producer Contemporary Amperex Technology rose over 11% of their Hong Kong buying and selling debut on Tuesday.

Shares have been buying and selling at 292 Hong Kong bucks apiece at the Hong Kong inventory alternate premarket, in comparison with the preliminary public providing value of HK$263 bucks according to percentage. 

The IPO raised HK$35.7 billion ($4.6 billion) in step with a corporate submitting, reportedly making it the biggest world list in 2025. CATL is already indexed on at the Shenzhen Stock Exchange, the place the stocks are down 2.26% up to now this 12 months, information from LSEG confirmed.

CATL stated in its Hong Kong submitting that 90% of the price range raised will pass towards development its upcoming manufacturing unit in Hungary, aimed toward supplying batteries to European car shoppers together with Stellantis, BMW and Volkswagen.

The corporate’s world push has coincided with expansions from main Chinese EV makers akin to BYD. However, those efforts hit a pace bump ultimate 12 months when the U.S. and EU positioned punitive price lists on EVs made in China, bringing up unfair industry practices.

CATL additionally discovered itself within the crosshairs of U.S.-China industry tensions previous this 12 months, with the Pentagon hanging it on a watchlist in January over suspected hyperlinks to China’s army — allegations the corporate has rejected.

In March, CATL posted a 9.7% drop in its 2024 annual income, hit by way of intense festival in China’s electric-vehicle marketplace that stressed the sector’s best battery manufacturer. Still, the corporate’s internet benefit went up by way of 15% 12 months over 12 months.

Demand for electrical automobiles in China, a essential marketplace for CATL, received momentum ultimate 12 months at the again of a mixture of subsidies and shopper acquire incentives. EV gross sales in China surged to 11 million in 2024 — a 40% build up in comparison to the former 12 months, information from U.Okay. analysis company Rho Motion confirmed.

“We’re a big believer and investor in CATL in our global EV strategy. It’s just phenomenal, it’s a ‘must own company,’ in my opinion, along with BYD for investors in the space,” stated Brendan Ahern, leader funding officer at KraneShares.

Bank of America, China International Capital Corporation, Goldman Sachs, Morgan Stanely, JPMorgan Chase have been the joint lead mangers for the Hong Kong providing.

Correction: This tale used to be revised to appropriately replicate the bounce in stocks at marketplace open.