Chinese battery manufacturer Contemporary Amperex Technology Co (CATL) formally applied for a listing on the Hong Kong Stock Exchange on Tuesday evening, as the company seeks to further expand its overseas operations, according to a document CATL sent to the Global Times on Tuesday.
The funds raised from the Hong Kong listing will primarily be used for overseas capacity expansion, international business development, and the replenishment of overseas working capital, providing financial support for the company's long-term internationalization strategy, the document said.
The Shenzhen-listed firm is expected to raise at least $5 billion in the Hong Kong listing, Reuters reported, noting that the listing would be the largest in Hong Kong in four years, citing data from Dealogic.
Through this H-share listing, CATL can effectively accumulate foreign exchange reserves, providing ample "ammunition" support for overseas projects, the company said, noting that the listing will also enhance the ability to integrate cross-border resources through an international capital platform, further allocate global resources, and improve the company's operational efficiency and profitability.
In recent years, CATL has been continuously expanding its overseas business. In the first three quarters of 2024, about 30 percent of CATL's revenue came from overseas, with multiple battery factories already established abroad to better meet the local supply needs of original equipment manufacturers in those locations.
In December, CATL announced a joint venture with global automotive giant Stellantis to establish a plant in Spain. This factory will be CATL's third major battery production base in Europe, according to the company.
Leveraging the power of international capital, CATL is expected to strengthen its in-depth cooperation with upstream and downstream enterprises in the global supply chain, accelerating its business expansion and technological innovation.
According to the prospectus, CATL's overseas automotive clients include BMW, Mercedes-Benz, Stellantis, Volkswagen and Ford, among others.
With this Hong Kong listing, CATL is expected to accelerate the integration of its global resources, leveraging Hong Kong's position as an international financial hub.
CATL is just one example of China's new-energy vehicle (NEV) sector expanding in the global market.
BYD, which is already listed on the Hong Kong Stock Exchange, has expanded its NEV footprint to six continents, covering over 400 cities in more than 100 countries and regions, according to Chinanews.com.cn.
In terms of overseas manufacturing, BYD has established passenger car factories in countries such as Hungary, Uzbekistan, Thailand and Brazil.
Another major Chinese electric vehicle battery producer, Envision Group, is building power battery factories in France and the UK to support the transformation of companies like Renault, the Xinhua News Agency reported.
With the global push for a green, low-carbon transition and the continued expansion of demand for new energy, the growth of China's new-energy sector overseas has seen an expanding trend, driven by ongoing technological innovation and a well-established production and supply chain system, the report said.
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