Chinese battery giant raises billions in this year's biggest listing
China's Contemporary Amperex Technology Co. Ltd. (CATL), the world's biggest electric vehicle battery maker, saw its shares soar on the first trading day in Hong Kong after the company made its debut there on Tuesday.
The secondary listing of CATL's shares raised at least $4.6 billion (€4.08bn) for the company, which already has its A-shares traded in mainland China, in Shenzhen.
The solid reception for CATL in Hong Kong suggests there is still an appetite among international investors for leading Chinese manufacturers despite trade tensions between Beijing and Washington.
It sold more than 135 million shares at their maximum offer price, HK$263 (€29.8) each. Its shares rose after they started trading at HK$296 (€33.56), 12.5% higher than their offer price. They were up about 17% by mid-afternoon local time.
CATL held a nearly 38% global market share for EV batteries in 2024, its listing documents showed. It supplies automakers like Tesla, Volkswagen, BMW, Mercedes-Benz, Ford, Toyota and Honda.
The company has faced pressure from the US In January, the US Defense Department added it to a list of companies it says have ties to China's military, an accusation that CATL denied. It called the inclusion a "mistake."
In April, John Moolenaar, chairperson of the US House Select Committee on China, wrote to the CEOs of JPMorgan Chase & Co. and Bank of America urging them to withdraw from their work on CATL's IPO. However, the two banks remained involved.
In the US, Ford Motor Co. is licensing technology from CATL to build batteries, but the plan faces resistance from some Republican lawmakers, who have expressed concern that the Chinese company could benefit from US tax dollars.
As a result of the US blacklist, the share offering excluded onshore US investors. However, many large US institutional investors have offshore accounts that allowed them to participate. The the new listing gives global investors easier access to the company's shares than before.
CATL said in a press release: 'This offering attracted a diverse range of investors from 15 countries and regions globally, including sovereign wealth funds, industrial capital, long-term institutions, insurance capital, and multi-strategy funds.'
The company said it plans to use most of the money raised to build its factories in Germany and in Hungary, to localise production in Europe, as part of a strategy to reduce the impact of import tariffs and gain higher market share in Europe.
CATL recorded a profit of CN¥ 55.3bn (€6.8bn) in 2024, up 16.8% from 2023. Investors in the US expect the company to generate an operating profit of about $10.6bn (€9.4bn), according to the Wall Street Journal, citing FactSet.
Government officials, including Hong Kong's Financial Secretary Paul Chan, attended its listing ceremony in the city's vibrant business district, Central, on Tuesday. The company's chairman Robin Zeng said his business is committed to becoming a zero-carbon technology company.
"Listing in Hong Kong means we are more broadly integrated into the global capital markets, and it's also a new starting point for us to promote the global zero-carbon economy," Zeng said.
The Taiwanese president said on Tuesday that trade tensions between the United States and Taiwan were merely 'frictions between friends', expressing optimism as tariff negotiations continue with Washington.
US President Donald Trump imposed 32% tariffs on all imports from Taiwan as part of sweeping duties levied against all US trading partners last month.
The tariffs on Taiwanese goods were subsequently lowered to 10% for 90 days to allow for trade negotiations. Officials from both sides held a first round of talks last month, to be followed by another in the coming weeks.
In a speech marking his first year as president and focusing on Taiwan's strategies to defuse the effects of US tariffs and military threats from China, Lai Ching-te struck an accommodating tone despite the tariff pressure.
The US and Taiwan have long 'co-operated and have also encouraged each other to grow,' he said. 'There are bound to be frictions between friends, but they can eventually be reconciled.'
'Even if there are differences of opinion, as long as there is a foundation of trust and sincere dialogue, they can understand each other better and deepen their friendship,' he added.
The US has traditionally been Taiwan's strongest unofficial ally in the face of military threats by China, which considers the self-ruled island its own territory, to be retaken by force if necessary. Washington is bound by its own laws to provide Taipei with the means to defend itself.
Lai said Taiwan would continue to strengthen its national defence capabilities, both through foreign military procurement and domestic arms development, and stand 'shoulder to shoulder' with its allies 'to exert deterrent power.'
'We will prepare adequately to avoid war and achieve the goal of peace,' he said.
He kept open the possibility of talks with Beijing, saying that 'Taiwan is very willing to engage in exchanges and cooperation with China' as long as there is mutual respect and dignity.
Taiwan's economy is supported by massive semiconductor firms that supply microchips globally as well as other electronics, advanced manufacturing and green tech makers.
Lai said he would continue to encourage foreign investment in Taiwan, citing Monday's announcement by American technology company Nvidia about opening a new office in northern Taipei.
Nvidia's Taiwan-born CEO Jensen Huang also announced his company would build an artificial intelligence supercomputer on the island in partnership with TSMC, tech firm Foxconn and the Taiwanese government.
He also backed increased investments by Taiwanese firms in the US.
In March, the island's largest chipmaker, TSMC, responded to Trump's tariff threats by pledging a new $100 billion (€88.7bn) investment in the US, in addition to earlier commitments to invest more than $65bn (€57.7bn) in three factories in Arizona, one of which began production late last year.
However, Lai's controversial proposal to completely remove tariffs on US goods 'on the basis of reciprocity,' in addition to increasing procurement of US products, triggered protests last week by Taiwanese farmers.
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