Shares in CATL, the world’s largest maker of batteries for electrical autos (EVs), soared about 17% Tuesday in its Hong Kong buying and selling debut after it raised about $4.6 billion within the largest preliminary public providing (IPO) globally this yr.
The strong reception of Chinese firm Contemporary Amperex Technology Co. (CATL) in Hong Kong suggests there’s nonetheless an urge for food amongst worldwide buyers for main Chinese producers regardless of commerce tensions between Beijing and Washington.
It offered greater than 135 million shares at their most provide worth, 263 Hong Kong {dollars} ($33.6) every. Its shares rose after they began buying and selling at 296 Hong Kong {dollars} ($37.80), 12.5% increased than their provide worth. They have been up about 17% by midafternoon native time.
CATL additionally has shares listed in Shenzhen, a business hub neighboring Hong Kong. They initially fell however then edged 0.9% increased on Tuesday.
CATL held an almost 38% international market share for EV batteries in 2024, its itemizing paperwork confirmed. It provides automakers like Tesla, Volkswagen, BMW, Mercedes-Benz, Ford, Toyota and Honda.
The firm has confronted stress from the U.S. In January, the U.S. Defense Department added it to an inventory of firms that stated that they had ties to China’s army, an accusation that CATL denied. It has referred to as the inclusion a “mistake.”
In April, John Moolenaar, chairperson of the U.S. House Select Committee on China, wrote to the CEOs of JPMorgan Chase & Co. and Bank of America to demand that the 2 American banks withdraw from their work on CATL’s IPO. But the 2 banks stayed on.
In the U.S., Ford Motor Co. is licensing expertise from CATL to construct batteries, however the plan faces resistance from some Republican lawmakers, who’ve expressed concern that the Chinese firm may benefit from U.S. tax {dollars}.
Because the U.S. has listed CATL as having ties to the U.S. army, the share providing was excluded from onshore U.S. buyers. However, many massive U.S. institutional buyers have offshore accounts that permit them to take part.
The firm stated it plans to make use of a lot of the web proceeds from the IPO to construct its manufacturing facility in Hungary, meant to convey it nearer to the manufacturing services of its principal European clients.
Government officers, together with Hong Kong’s Financial Secretary Paul Chan, attended its gong-striking ceremony on Tuesday within the metropolis’s vibrant business district, Central. The firm’s chairman, Robin Zeng, stated his business is dedicated to changing into a zero-carbon expertise firm.
“Listing in Hong Kong means we are more broadly integrated into the global capital markets, and it’s also a new starting point for us to promote the global zero-carbon economy,” Zeng stated.
CATL recorded a revenue of 55.3 billion yuan ($7.6 billion) in 2024, up 16.8% from 2023. Its itemizing surpassed JX Advanced Metals’ $2.9 billion IPO in Japan in March, which was beforehand the most important this yr, in accordance with Renaissance Capital, a supplier of pre-IPO analysis and IPO-focused ETFs.
Source: www.dailysabah.com