CATL lands $4.6b in HK float

Visitors check out heavy trucks powered by CATL batteries during an event in Datong, Shanxi province, on Sunday. (ZHU XINGXIN/CHINA DAILY)

Shares of Contemporary Amperex Technology Co Ltd surged 16.43 percent as the Chinese mainland battery giant debuted on the Hong Kong bourse on Tuesday.

It raised HK$35.7 billion ($4.6 billion) via an initial public offering, which has become the largest IPO in Hong Kong so far this year.

The stock closed at HK$306.2 per share, which industry experts believe underscores investor confidence in the world's top electric vehicle battery supplier despite mounting geopolitical headwinds and intensifying industry competition.

CATL Chairman and CEO Robin Zeng said at the listing ceremony that the company's float in Hong Kong marks a broader integration into the global capital market and a new start for advancing the zero-carbon economy.

"CATL is not just a battery component manufacturer — we are a provider of integrated system solutions and are committed to becoming a zero-carbon technology company," Zeng said.

The company drew strong interest from global investors. Its IPO was priced at the top of the range and attracted cornerstone commitments from sovereign wealth funds and major institutions, such as the Kuwait Investment Authority, Sinopec, UBS Asset Management, Hillhouse, Oaktree and Canada's RBC.

Zhang Xiang, secretary-general of the International Intelligent Mobility Association, said: "This IPO gives CATL vital access to foreign exchange reserves — crucial for sustaining multi-billion-euro investments across Europe. It also further strengthens CATL to push global expansion."

CATL said proceeds from the listing will primarily fund its European build-out, with 90 percent earmarked for its Hungary plant — a 7.3 billion euro ($8.21 billion) project slated to become Europe's largest EV battery facility. The factory, located in Debrecen, is expected to begin trial production by late 2025 with an annual capacity of 100 gigawatt-hours.

CATL is also scaling up operations at its Thuringia plant in Germany and advancing another battery project in Spain in partnership with Stellantis.

In the domestic market, the company launched a standardized battery pack for battery swap-enabled heavy-duty trucks over the weekend in Datong, Shanxi province.

Yang Jun, CEO of Qiji Energy, a unit of CATL, said that the battery swap block has the industry's longest level of lifespan and allows vehicle operators to choose the number of packs they want.

"We have now launched more than 30 battery swap-enabled heavy truck models with more than a dozen automakers," Yang said.

"Compared to fuel-powered heavy trucks, those using Qiji Energy's chassis battery swap technology can save 60,000 yuan ($8,320) per 100,000 kilometers of operation."

Zeng from CATL also predicted on Saturday that half of China's sales of heavy trucks could be electric vehicles by 2028, up from 10 percent in 2024.