CATL Poised to Pick Banks for $5 Billillion HK Share Sale

Contemporary Amperex Technology Co. Ltd. (CATL), the world's leading electric vehicle (EV) battery maker, is set to pick banks for its second listing in Hong Kong, aiming to raise at least $5 billion. This move comes as the company seeks to expand its global business layout and support the development and operation of overseas projects.

CATL has hired Bank of America Corp., China International Capital Corp., CSC Financial Co., and JPMorgan Chase & Co. as lead arrangers for the share sale. These banks bring a wealth of global reach, local knowledge, strong relationships, and reputation to the table, making them ideal partners for CATL's ambitious plans.

The company's decision to list in Hong Kong is a strategic move that will allow it to tap into a broader investor base, including international investors. This will not only help CATL raise the necessary funds but also provide it with a hedge against potential weakness in China's domestic A-share markets.

CATL's planned share sale is a significant event in the Hong Kong IPO market, which has been heating up in recent months. The company's listing could become one of the largest in the city in recent years, potentially surpassing Midea Group Co.'s $4.6 billion share sale in September 2021.

The company's strong financial performance and dominant market position make it an attractive investment opportunity. In the first three quarters of 2024, CATL's net profit rose by 15.6% year-on-year, reaching 36 billion yuan, supported by 264.7 billion yuan in cash reserves. Its ability to remain consistently profitable despite recent turmoil in the sector is a testament to its strong fundamentals and competitive advantage.

CATL's planned share sale is a testament to the company's confidence in its future growth prospects and its commitment to expanding its global business. With the support of its chosen lead arrangers, CATL is well-positioned to successfully complete its second listing in Hong Kong and achieve its global expansion goals.



In conclusion, CATL's planned $5 billion share sale in Hong Kong is a strategic move that will allow the company to tap into a broader investor base, raise necessary funds, and expand its global business. With the support of its chosen lead arrangers, CATL is well-positioned to successfully complete its second listing and achieve its global expansion goals.