Chinese battery giant CATL is targeting a fundraising of at least HK$31.01 billion ($3.99 billion) in its Hong Kong listing, making it the largest global initial public offering (IPO) so far in 2025. According to its prospectus filed on Monday, CATL plans to sell 117.9 million shares at a maximum price of HK$263 each. The announcement saw its Shenzhen-listed shares climb 3.6%, outperforming the broader CSI300 index, which rose by 0.9%.
The IPO surpasses the $3 billion listing by JX Advanced Metal in Tokyo earlier this year and is Hong Kong’s biggest share sale since Midea Group raised $4.6 billion in 2023. Over 20 cornerstone investors, including Sinopec and the Kuwait Investment Authority, have committed around $2.62 billion to the offering. The Hong Kong shares, set to begin trading on May 20, will be priced slightly below CATL’s Shenzhen stock if they reach the maximum offer price.
Proceeds from the IPO will fund CATL’s European expansion, with about 90% allocated to constructing a major battery manufacturing plant in Hungary. The first phase of the €2.7 billion ($3.03 billion) factory is scheduled to begin operations this year, serving automakers like BMW, Stellantis, and Volkswagen. Construction of the second phase is expected to commence later in the year as part of the company’s global growth strategy.
Despite being listed by the U.S. Defense Department as a Chinese firm with military ties, CATL stated that the designation has minimal business impact and is being challenged as a “false designation.” U.S. onshore investors are barred from participating in the IPO, though their offshore counterparts can invest. The listing coincides with recent U.S.-China trade discussions, though high tariffs on goods between both countries remain in place, leaving uncertainty around future impacts on CATL’s operations.