HONG KONG, May 19, 2025 — Contemporary Amperex Technology Co. Ltd. (CATL), the world’s leading electric vehicle battery manufacturer, has completed the largest initial public offering (IPO) of the year to date, raising US$4.7 billion through its listing on the Hong Kong Stock Exchange (HKEX).
Strikingly, the offering excluded onshore U.S. institutional investors by design, underscoring the deepening divide in U.S.-China capital market engagement and CATL’s strategic pivot towards geopolitical insulation.
A Strategic Listing Amid Rising Tensions
CATL, which already trades on China’s Shenzhen Stock Exchange, offered shares in Hong Kong at a 6.7% discount to its mainland price—a far narrower margin than the typical ~25% discount applied to dual-listed Chinese firms. The pricing signals strong confidence in market appetite, bolstered by the offering being multiple times oversubscribed.
The decision to avoid U.S.-based institutional capital stems from heightened geopolitical concerns. In January, CATL was added to a U.S. government list of banned entities due to alleged ties to the Chinese military. By avoiding U.S. fund participation, CATL has limited its exposure to future sanctions or legal challenges should U.S.-China relations further deteriorate.
Despite the lack of U.S.-based capital in the share register, JPMorgan Chase and Bank of America were among the nine underwriters involved in the listing.
A Global Powerhouse in Batteries
Founded by Chinese billionaire Robin Zeng, CATL commands an estimated 37.5% share of the global EV battery market, serving clients including Tesla, BMW, Ford, Mazda, Stellantis, Volkswagen, Honda, and a wide range of Chinese automakers.
The company, valued at around US$158 billion, continues to expand aggressively. Proceeds from the IPO will primarily fund its new battery facility in Hungary, strategically located near BMW’s flagship EV production plant, strengthening its European footprint.
Middle Eastern Capital Steps In
With U.S. money off the table, CATL has drawn heavily from Middle Eastern sovereign wealth funds, with major commitments including US$500 million each from Sinopec HK and the Kuwait Investment Authority. In total, over 20 cornerstone investors contributed approximately US$2.6 billion, a clear signal of strong regional and global investor interest.
Beyond financial backing, the Middle East has become a rapidly growing market for Chinese electric vehicles. In 2024, Chinese passenger vehicle exports to the region surged 61%, driven by accelerating EV adoption.
Financial Performance and Outlook
CATL reported a 33% increase in profit in Q1 2025 compared to the same period in 2024, reflecting strengthening cash margins and global demand for EV batteries.
Shares began trading this morning at HK$263 per share, solidifying CATL’s position not only as a dominant force in battery manufacturing, but also as a bellwether for Asia’s evolving capital market dynamics amid ongoing global fragmentation.
Comparative Context
In contrast, the largest IPO on Wall Street this year—natural gas exporter Venture Global—raised US$1.75 billion in January, underscoring the scale of CATL’s listing and the shifting epicenter of mega-cap offerings toward Asia mostly due to US recent backtracking on trade.
CATL Hq Ningde, China Picture from catl.com
