Shares of China's CATL open 12.5% higher in Hong Kong trading debut
By Scott Murdoch and Julie Zhu
HONG KONG (Reuters) -Shares of China battery giant CATL opened 12.5% higher than the subscription price on Tuesday after the company raised $4.6 billion in its Hong Kong listing, the largest of its kind in the world this year.
CATL shares started trading at HK$296 each in Hong Kong after the firm sold its shares at HK$263 apiece in the listing.
Hong Kong's Hang Seng Index was up 0.3% in early trading.
CATL, which is also listed in Shenzhen, sold 135.6 million shares in Hong Kong to raise $4.6 billion, which was the largest listing in the city since Midea Group raised the same amount last year. CATL's Shenzhen stock was down about 0.5% on Tuesday.
The institutional tranche of the Hong Kong deal was oversubscribed 15.2 times, according to CATL's filings, while the retail portion was 151 times oversubscribed.
"The Hong Kong stock listing means our wider integration into the global capital market and a new starting point for us to promote the global zero-carbon economy," CATL Founder and Chairman Robin Zeng said at a listing ceremony in Hong Kong.
CATL had aimed to raise about $4 billion in the listing but increased the size of the deal following the strong demand from investors.
A further 17.7 million can be sold as part of a so-called "green shoe option" that would take the size of CATL's raising to $5.3 billion.
At that size, it would be the largest listing in Hong Kong since Kuaishou Technology raised $6.2 billion in 2021, according to LSEG data.
CATL's bookbuild had been open for a day when the U.S. and China announced a brief truce in the trade war that had roiled global financial markets since early April.
The U.S. will cut extra tariffs it imposed on Chinese imports last month from 145% to 30% for the next three months, the two sides said last week, while Chinese duties on U.S. imports will fall to 10% from 125%.
The move created some extra momentum for CATL, whose bookbuild had been already covered with pre-commitment orders when the deal launched last Monday, according to two sources with direct knowledge of the bookbuilding process.
The tariffs pause prompted some global long-only investors who had previously not bid for CATL stock in the Hong Kong listing to place orders, they added.
CATL did not respond to a request for comment.
CATL's net profit in the first three months of 2025 rose 32.9% year-on-year to 14 billion yuan ($1.91 billion), its fastest pace in nearly two years.
It has been extending its lead in the electric vehicle battery market with a 38% share globally in 2024. That increased from 36% a year ago, according to data from SNE Research.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
San Francisco Chronicle
16 minutes ago
- San Francisco Chronicle
China issues warrants for alleged Taiwanese hackers and bans a business for pro-independence links
TAIPEI, Taiwan (AP) — China issued warrants Thursday for 20 Taiwanese people it said carried out hacking missions in the Chinese mainland on behalf of the island's ruling party, while separately banning dealings with a Taiwanese company whose owners mainland authorities called 'hardcore Taiwan independence supporters.' Police in the southern manufacturing hub of Guangzhou said they were led by a man named Ning Enwei on behalf of Taiwan's independence-leaning Democratic Progressive Party but did not identify their alleged crimes. Meanwhile, China's government said all commercial contact had been banned with the Sicuens International Company Ltd., which it says are led by businessman Puma Shen and his father, calling the two men independence supports. Shen is also the head of the Kuma Academy, an organization that encourages Taiwanese people to prepare for possible invasion. China considers Taiwan its own territory, to be brought under its control by force if necessary. Zhu Fenglian, a spokesperson for the Taiwan Affairs Office of the China's Cabinet, said Sicuens 'engages in trade and business cooperation with certain mainland enterprises in pursuit of economic benefits.' 'The mainland side will never allow enterprises related to die-hard 'Taiwan independence' supporters to seek profits in the mainland,' Zhu was quoted as saying. China last year announced punishments on Shen and the Kuma Academy, saying Shen had been 'actively and systematically organizing activities promoting Taiwan independence.' The Academy's website says it 'aims to prepare a prewar mentality for civilians, our mission is to cultivate self-defense capability and will to defend Taiwan. We provide knowledge and skills to help people sustain themselves and recognize enemy disinformation operations in both peace and wartime situations.'
Business Insider
27 minutes ago
- Business Insider
Nvidia Stock (NVDA) Takes Battle to DeepSeek as AI Chips Go Full Speed Ahead
Semiconductor giant Nvidia (NVDA) is battling back against its Chinese rivals by becoming more efficient at training AI models, according to new data. Confident Investing Starts Here: Chips Ahead MLCommons, a nonprofit group, has released new data showing that Nvidia's newest type of chips have made AI training gains. The number of chips required to do the jobs has apparently dropped dramatically. The data shows how chips fared at training AI systems such as Llama 3.1 405B, an open-source AI model released by Meta Platforms (META) that has a large enough number of what are known as 'parameters'. These give an indication of how the chips would perform at some of the most complex training tasks in the world. The data showed that Nvidia's new Blackwell chips are, on a per-chip basis, more than twice as fast as the previous generation of Hopper chips. In the fastest results for Nvidia's new chips, 2,496 Blackwell chips completed the training test in 27 minutes. It took more than three times that many of Nvidia's previous generation of chips to get a faster time. China Challenge This puts Nvidia in a prime position to challenge rivals such as China's DeepSeek, which claims to use far fewer chips than U.S. rivals. Chetan Kapoor, chief product officer for CoreWeave (CRWV), which worked with Nvidia to produce some of the results, said there has been a trend in the AI industry toward stringing together smaller groups of chips into subsystems for separate AI training tasks, rather than creating homogeneous groups of 100,000 chips or more. 'Using a methodology like that, they're able to continue to accelerate or reduce the time to train some of these crazy, multi-trillion parameter model sizes,' Kapoor said.
The Hill
32 minutes ago
- The Hill
China issues warrants for alleged Taiwanese hackers and bans a business for pro-independence links
TAIPEI, Taiwan (AP) — China issued warrants Thursday for 20 Taiwanese people it said carried out hacking missions in the Chinese mainland on behalf of the island's ruling party, while separately banning dealings with a Taiwanese company whose owners mainland authorities called 'hardcore Taiwan independence supporters.' Police in the southern manufacturing hub of Guangzhou said they were led by a man named Ning Enwei on behalf of Taiwan's independence-leaning Democratic Progressive Party but did not identify their alleged crimes. Meanwhile, China's government said all commercial contact had been banned with the Sicuens International Company Ltd., which it says are led by businessman Puma Shen and his father, calling the two men independence supports. Websites mentioning Sicuens say it specializes in sourcing bicycle parts from China. Shen is also the head of the Kuma Academy, an organization that encourages Taiwanese people to prepare for possible invasion. China considers Taiwan its own territory, to be brought under its control by force if necessary. Zhu Fenglian, a spokesperson for the Taiwan Affairs Office of the China's Cabinet, said Sicuens 'engages in trade and business cooperation with certain mainland enterprises in pursuit of economic benefits.' 'The mainland side will never allow enterprises related to die-hard 'Taiwan independence' supporters to seek profits in the mainland,' Zhu was quoted as saying. China last year announced punishments on Shen and the Kuma Academy, saying Shen had been 'actively and systematically organizing activities promoting Taiwan independence.' The Academy's website says it 'aims to prepare a prewar mentality for civilians, our mission is to cultivate self-defense capability and will to defend Taiwan. We provide knowledge and skills to help people sustain themselves and recognize enemy disinformation operations in both peace and wartime situations.' Taiwan has responded by bulking up its own military, while some private individuals have opened camps for training in guerilla warfare.
