CATL’s $5 Billion Hong Kong IPO: A Bold Global Expansion Amid Geopolitical Tensions

Contemporary Amperex Technology Co. Ltd. (CATL), the world’s largest electric vehicle (EV) battery manufacturer, is preparing for a landmark secondary listing in Hong Kong, aiming to raise at least $5 billion. This marks one of the biggest IPOs in the city since 2021 and comes at a pivotal time for both the company and the global EV supply chain.

CATL is expected to launch IPO in Hong Kong during the week of 12 May 2025. Source: www.catl.com

Driving Global Growth

CATL plans to use the proceeds from its Hong Kong IPO to fund overseas expansion, including a €7.3 billion battery factory in Hungary. The plant will be one of the largest battery production facilities in Europe, enabling CATL to deepen its reach into the Western market. The move aligns with the company’s goal to capture 40% of global EV battery demand by 2030, reinforcing its leadership in an increasingly competitive sector.

The IPO will involve the issuance of over 220 million H-shares, with major global banks such as JPMorgan Chase, Bank of America, and China International Capital Corporation acting as underwriters. Despite regulatory hurdles, investor interest is expected to be strong due to CATL’s dominant position in the EV battery market and its extensive partnerships with carmakers worldwide.

Regulatory and Political Challenges

However, the listing has not been without controversy. U.S. regulators have added CATL to a list of companies allegedly linked to China’s military modernization, prompting restrictions on American investors. Furthermore, U.S. lawmakers have urged some underwriting banks to reconsider their involvement, citing alleged ties between CATL and entities under U.S. sanctions.

CATL has denied any wrongdoing and stated that it complies with all applicable laws. Still, the political spotlight adds a layer of complexity to what would otherwise be a straightforward growth-focused capital raise.

Implications for Hong Kong and Global Markets

The success of CATL’s IPO will be closely watched as a barometer for international investor confidence in Chinese companies. Hong Kong’s IPO market has seen a resurgence in early 2025, and a successful listing by CATL could spark renewed momentum. It also reinforces Hong Kong’s role as a bridge between Chinese firms and international capital, even in a time of geopolitical uncertainty.

For CATL, the listing is not just about funding—it’s a strategic step to cement its position as the undisputed leader in EV batteries while building resilience against geopolitical disruptions.