The secondary listing of CATL on the Hong Kong Stock Exchange (HKEX) on May 20, 2025, is a significant event for investors in the German-speaking region, as CATL is a leading company in battery production and thus closely associated with the development of e-mobility. Here are the key details and implications of this listing:
Background and Significance
- CATL as a Leading Company: Contemporary Amperex Technology Co. Ltd. (CATL) is one of the largest and most influential battery manufacturers worldwide. The company plays a central role in the development and production of batteries for electric vehicles, which makes it a key player in the e-mobility sector.
- Secondary Listing in Hong Kong: The secondary listing on the HKEX is a strategic move to strengthen CATL’s global presence and access new investors. This is particularly relevant as it is the first A-share company to conduct a secondary listing in Hong Kong with a fixed price cap without a discount to the last A-shares price.
Details of the Listing
- Emission Proceeds and Placement: CATL’s IPO in Hong Kong generated proceeds of approximately $4.6 billion, representing the largest IPO of the year. The placement included 135 million shares before the over-allotment option at a price of 263 HKD per share.
- Investor Interest: The institutional tranche was oversubscribed by 15 times, while the retail tranche was oversubscribed by as much as 151 times. This illustrates the strong interest of investors in CATL.
- First Trading Day: The stock started at a price of 296 HKD, which is an increase of about 12.5% compared to the issue price. During the day, the price rose further to as high as 306.20 HKD.
Implications and Outlook
- Expansion in Europe: The proceeds from the IPO are intended, among other things, for a multi-billion dollar expansion in Europe to promote the production of green energy technologies.
- Market Potential and Future Prospects: The strong demand for CATL shares reflects investors’ confidence in the long-term value of the company and the enormous market potential of carbon-free technologies.
Overall, the secondary listing of CATL on the HKEX is a significant event that is of great importance to both investors and the development of e-mobility.