China’s CATL Raises $4.6 Billion in Hong Kong – The Largest IPO Globally in 2025

On May 20, 2025, Contemporary Amperex Technology Co. Ltd. (CATL), the world’s largest electric vehicle battery manufacturer, successfully completed its initial public offering on the Hong Kong Stock Exchange, raising approximately $4.6 billion — the largest IPO globally so far this year.

Background: CATL – A Global Leader in EV Batteries

Founded in 2011 in Ningde, China, CATL holds around 37% of the global market share for EV batteries. The company supplies batteries to leading automakers such as Tesla, BMW, Volkswagen, and Toyota, and is considered a pioneer in battery technologies — particularly in lithium iron phosphate (LFP) technology, known for its efficient and fast-charging capabilities.

IPO Details: Capital Raised Amid Overwhelming Market Demand

During the IPO, CATL offered 135.6 million shares at 263 Hong Kong dollars per share. On its first trading day, the stock surged by approximately 13%, closing at 296 Hong Kong dollars. Investor demand was immense: the institutional tranche was oversubscribed by 15.2 times, while the retail portion was oversubscribed by a staggering 151 times.

Use of Funds: Global Expansion and a New Plant in Hungary

Around 90% of the funds raised will be allocated to building a new battery plant in Hungary, with a total investment of approximately $7.3 billion. The facility will supply CATL’s European clients, including BMW, Stellantis, and Volkswagen. The plant is expected to begin production later this year as part of CATL’s broader global expansion strategy.

Geopolitical Challenges: Tensions with the United States

Despite the successful IPO, CATL faces geopolitical headwinds. In January 2025, the U.S. Department of Defense added CATL to its list of companies allegedly linked to the Chinese military. This led to pressure on major U.S. banks such as JPMorgan and Bank of America to withdraw from involvement in the IPO. While CATL denied these allegations, American institutional investors largely abstained from participating.

Conclusion: A Milestone for Global Capital Markets

CATL’s IPO in Hong Kong marks a significant milestone — both for the company and for Asian capital markets. It underscores the growing investor appetite for green and renewable energy technologies and reinforces Hong Kong’s position as a global financial hub, especially for Chinese companies seeking international capital.

Despite ongoing geopolitical tensions, CATL’s success could serve as a model for other Chinese tech firms looking to raise funds on the global stage.