Chinese electric vehicle (EV) battery maker Contemporary Amperex Technology Co., Limited (CATL) is set to raise at least $4 billion in what is said to be Hong Kong’s biggest share sale, and the largest global listing so far this year. The company is selling 117.9 million shares at a maximum offer price of HK$263 per share, according to filings lodged with the Hong Kong Stock Exchange. The prospectus filed on Monday reveals that more than 20 cornerstone investors, led by Sinopec and Kuwait Investment Authority, have subscribed to buy about $2.62 billion worth of CATL shares.
CATL, which already has shares listed on China’s Shenzhen stock exchange, is the world’s biggest producer of batteries for EVs and energy storage systems. This listing would overshadow JX Advanced Metals’ $3 billion Tokyo initial public offering in March, according to Dealogic data. It could also raise more than if demand is strong and a Greenshoe option — allowing underwriters to sell more shares than planned — is exercised.
CATL, which is based in Ningde, Southeastern China has seen impressive growth amid China’s EV boom. Since then, it has embarked on an ambitious expansion plan, including building battery factories in Europe and licensing technology to U.S. carmakers. However, it has also drawn scrutiny from Washington D.C., and uncertainty over its long-term position in the U.S. market, amid the trade tensions between U.S. and China.
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While the U.S. has said it made “substantial progress” in its trade talks with Chinese officials in Geneva — a sign that the trade war might de-escalate soon. However, CATL said in its filing that U.S. tariff policies are “rapidly evolving” and it “cannot predict how tariff policies in various countries may further evolve” or potentially affect its business.
The company has previously said the impact from U.S. tariffs on the company would be minimal as that market accounts for only a small part of its business. CATL has also been licensing its battery technology to help its U.S. clients, including Ford and Tesla, to build their battery plants instead of building its own while such partnerships are also often being criticized by U.S. politicians.
The filing also revealed that despite the U.S. congressional committee last month calling for the country’s banks to drop out of the deal, the main underwriters of the listing include U.S. banks JP Morgan Chase & Co and Bank of America.