From Yahoo Finance: 2025-05-12 06:39:00

CATL, a Chinese electric-vehicle battery giant, seeks to raise $5.3 billion in a Hong Kong stock offering, potentially the world’s biggest listing this year. The company plans to use proceeds for international expansion, including a new factory in Hungary to supply clients like Mercedes-Benz and solidify its industry lead.

Investor interest in CATL’s share sale surpassed expectations, with shares priced at a maximum of HK$263 each. The company aims to start trading on May 20, potentially doubling proceeds in Hong Kong’s market for listings this year. Despite U.S.-China tensions, Chinese companies are moving forward with listing plans in Hong Kong.

CATL is offering around 118 million shares, which could increase to 156 million with a greenshoe option. Cornerstone investors have committed to purchasing $2.6 billion worth of stock. The company is conducting a Regulation S offering, limiting sales to U.S. onshore investors and exempting it from certain U.S. regulatory filing obligations.

The company obtained a waiver from the Hong Kong exchange regarding a clawback mechanism, allowing institutional investors to maintain a larger proportion of allocated shares. Despite being blacklisted by the Pentagon in January over alleged military links, CATL continues with its listing plans. U.S. congressional committee pressure on banks like JPMorgan Chase & Co. and Bank of America Corp. to withdraw from the deal due to these alleged links was unsuccessful.

Read more: CATL major stock sale to fund new manufacturing footprint in Europe