Thursday, December 19, 2024

CATL Considers Second Hong Kong Listing to Raise at Least $5 Billion

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(Bloomberg) — Contemporary Amperex Technology Co. Ltd. is considering a second listing in Hong Kong that could raise at least $5 billion, making it the city’s biggest since early 2021, according to people familiar with the matter.

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CATL, as the world’s top electric-vehicle battery maker is known, is talking with potential advisers and a listing might happen as soon as the first half of 2025, the people said, asking not to be identified discussing private information.

Raising $5 billion or more would top Midea Group Co.’s $4.6 billion share sale in September, the biggest in Hong Kong since Kuaishou Technology’s $6.2 billion in early 2021. Midea’s Hong Kong-listed shares have risen 37% in three months.

CATL’s deliberations are ongoing and plans could change, the people said. A second listing would still require approval from China’s securities regulator.

A representative for the EV battery maker declined to comment.

CATL, based in southeast China’s Fujian province, trades on the Shenzhen stock exchange. Its shares have climbed 65% this year, helped by a surge in late September when Chinese markets rallied on the back of government talk of stimulus plans. CATL has a market value of 1.2 trillion yuan ($164 billion).

After four years of losses, Hong Kong’s Hang Seng Index is on track for a gain this year, advancing about 15% since the start of January. The city’s biggest IPO on record was AIA Group Ltd.’s in 2010, which raised more than $20 billion.

–With assistance from Haze Fan and Danny Lee.

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