CATL shares rose 16% on the first day of trading on the Hong Kong Stock Exchange after the Chinese EV battery giant raised $4.6 billion on its biggest list of 2025.
The stock closed at HK $306.20 from the IPO price of HK hk $263, surpassing a 1.5% increase on the broader Hang Seng index. At one point, the stock reached HK$311.40. This is the second most aggressively traded shares due to sales, with over 27 million shares (equivalent to HK 8.28 billion).
This was more than just a big day for CATL. Strong domestic and international demand suggests new confidence in Chinese stock lists, despite market volatility and continued trade tensions in the background.
“The company, also listed in Demi Shenzhen, is the second most aggressively traded shares in Hong Kong by turnover rate, with 27.69 million shares worth HK 8.28 billion on the first day of trading,” Reuters reported.
CATL originally aimed to raise $4 billion, but after being overwhelmed by investors’ profits, it increased its offering. If the “green shoes” option is exercised, the total could rise to $5.3 billion, placing it just behind Hando’s $6.2 billion IPO in 2021.
The institutional portion of the transaction was oversubscribed by more than 15 times, but retail demand passed through the roof.
Such momentum is rare in Hong Kong these days. According to LSEG data, the city has so far won just $7.73 billion raised so far this year through IPOs and second listings.
Global investors apparently weren’t surrounded by CATL’s inclusion on the US Department of Defense list in January, denounced its ties with the Chinese military. In its prospectus, CATL said it is “working with the US Bureau to address false designations.”
Among US blacklists, CATL will raise billions and 16% of rockets in its Hong Kong debut
It didn’t stop investors, including US investors. Some US investors used offshore accounts to participate. Although CATL limited land access to its offering, interest still remained strong.
IPOs come at a crucial moment. That day, CATL began the construction process for the book on May 12th – the US and China announced a 90-day truce in an ongoing trade dispute. The news brought additional institutional demand, with long dedicated funds taking part after the first out.
CATL founder and chairman Robin Zeng called it “a new starting point for promoting the world’s zero carbon economy” at a ceremony in Hong Kong.
CATL plans to use a lot of money to build a new battery plant in Hungary. There, they have already worked with major automakers such as BMW, Stellantis and Volkswagen. This is part of a broader push to increase production outside of China and provide more direct global EV demand.
Hong Kong Exchange CEO Bonnie Chan said more than 40 mainland-listed companies are exploring IPOs in the city. One of the major draws she pointed out is that the Hong Kong listing allows Chinese companies to access offshore capital.
CICC, one of China’s largest investment banks, led the deal along with JPMorgan, Bank of America and China Securities International. Wang Shuguang, who oversees CICC’s investment banking, said the transaction could help “reviving Hong Kong’s capital markets.”
China will strengthen grip in the EV battery market as Northvolt collapses, as CATL surges at $4.6 billion IPO
The market advantage of CATL is not a small factor in trading success. According to a survey by SNE, the company won nearly 38% of the global EV battery market in 2024, widening the gap with its nearest rival.
CATL has gained momentum with strong international demand and is expanding its footprint in Europe, but the contrast has not sharpened across the continent. Northvolt, once touted as a European answer to China’s EV battery hegemony, filed for bankruptcy after burning a staggering $10 billion in funding.
It’s hard to ignore the timing. CATL is not only growing, but also solidifying its lead when Western rivals are falling apart. For many investors, the IPO has not only been involved in growth stocks. This was a vote of confidence in China’s control over the global battery supply chain.
Contemporary Amperex Technology Co., Limited (CATL) led a 37.9% share in 2024, earning more than double its closest rival, BYD, and more than double the share of 17.2%.
The lead isn’t just scale. CATL has deep ties with global automakers such as Tesla, BMW, Volkswagen and Ford, and has poured billions into overseas production. A key part of that strategy is a $7.3 billion battery factory under construction in Hungary, with the aim of supplying Europe’s largest automotive brand.
Despite being flagged by the US Department of Defense earlier this year, the company has not struggled to attract capital. The recent $4.6 billion listing in Hong Kong (the largest IPO of 2025 so far) shows that global investors still view it as the dominant force of the EV transition.
Meanwhile, the list didn’t just mark a fundraising victory. For now, it signal that international investors are making big bets on the future of China’s EVs, even with geopolitical risks in the background.
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