CATL's H-share Debut Rises Over 13%, Power Battery Leader Raises 30 Billion Targeting Europe

Contemporary Amperex Technology Co., Limited (CATL) (03750.HK), the global leading enterprise in power batteries, officially listed on the Hong Kong Stock Exchange today. As of the time of writing, its share price had risen by 13.54% from its issue price, trading at HKD 298.60.

Note: Performance of CATL's H shares

According to an announcement yesterday, CATL announced the results of the global offering and allocation of its H shares. The overallotment option had been fully exercised, with a total of 136 million H shares issued. The final offering price was HKD 263 per share, raising a total of approximately HKD 35.657 billion in gross proceeds and approximately HKD 35.331 billion in net proceeds.

The Hong Kong public offering was oversubscribed by more than 0.15 times, with a total of 310,800 valid applications received. The international offering was oversubscribed by 15.17 times, with 428 placees.

It is worth noting that this Hong Kong IPO has attracted cornerstone investors, including energy giants, sovereign wealth funds, and top market-oriented institutions, with subscriptions of up to HKD 20.371 billion, accounting for over 40% of the total funds raised. According to the prospectus, investors participating in this cornerstone subscription include Sinopec, the Kuwait Investment Authority, Hillhouse Capital, Gaoyi Asset Management, Ningxia Ruiyin Lead Resource Recycling Co., Ltd., Oaktree Capital Management, Mirae Asset Global Investments, Royal Bank of Canada, CPIC, Taikang, Boyu Capital, and Greenwoods Asset Management. Among them, Sinopec, the Kuwait Investment Authority, and Hillhouse Capital subscribed for $500 million, $500 million, and $200 million, respectively.

CATL's net profit increased by 15% YoY last year

As the leading enterprise with the highest market share in global power batteries for six consecutive years, CATL achieved operating revenue of RMB 362 billion in 2024, a year-on-year decrease of 9.7%. Net profit attributable to the parent company reached RMB 50.7 billion, a year-on-year increase of 15%.

In terms of the power battery system, which has attracted significant market attention, CATL's total sales of lithium-ion batteries reached 475 GWh. Among them, the power battery system contributed 381 GWh, up 18.85% YoY. Sales of the ESS battery system reached 93 GWh, up 34.32% YoY.

Use of IPO proceeds

CATL, which has already completed its listing on the A-share market, is listing on the Hong Kong Stock Exchange in connection with its global capacity layout. The net proceeds from this IPO amount to approximately HKD 35.331 billion (calculated based on the issue price of HKD 263), with the funds primarily focused on the global capacity layout. Among them, 90% of the funds (HKD 27.646 billion) will be used for the construction of the base in Debrecen, Hungary. This gigafactory is planned to have a total capacity of 72 GWh and will be constructed in two phases. Phase I has already invested EUR 700 million and is expected to support European automakers such as BMW and Mercedes-Benz upon reaching full production, covering the major European markets within its service radius. The remaining 10% of the funds will be used as working capital to support daily operations.

It is noteworthy that the Hungary project is CATL's first overseas production site, marking a new stage in the company's globalization strategy. With the implementation of the European carbon tariff policy and the continuous increase in the penetration rate of EVs, this base will effectively circumvent trade barriers and enhance the service response speed to European customers.