CATL shares surge 13% on first day of Hong Kong listing, biggest IPO deal of 2025
Shares of battery maker CATL or
Contemporary Amperex Technology
Co Limited, soared more than 13per cent , after the company's debut in Hong Kong's stock market on Tuesday. The company raised a whopping $4.6 billion, making it the biggest initial public offering anywhere in the world so far this year.
CATL is a global leader in electric vehicle battery manufacturing, producing more than a third of all EV batteries sold worldwide. The company's secondary listing in Hong Kong comes as it ramps up efforts to expand globally, especially across Europe.
The stock jumped to a high of HK$299.80 during morning trading, recording a 13.7per cent rise from its listing price of HK$263.00.
Expansion
CATL is already listed on the Shenzhen Stock Exchange in southern China, and its secondary listing in Hong Kong was announced last December. The funds raised from the Hong Kong listing are expected to fuel CATL's overseas growth. The company is already building a second European factory in Hungary, following the opening of its first in Germany last year. It has also partnered with automotive giant Stellantis on a $4.6 billion battery plant in Spain, due to begin production by late 2026.
Blockbuster listing
Tuesday's listing comes as Hong Kong's stock exchange looks forward to bringing back major Chinese firms, aiming to reclaim its title as the world's premier IPO venue. The financial markets had seen a downturn in new listings after a regulatory crackdown by Beijing in 2020 prompted several mainland giants to hold their IPO plans.
Controversial IPO
Meanwhile, CATL's debut has not been without controversy. In January, the US defence department designated the company as a 'Chinese military company.' In April, the US house select committee on the Chinese Communist Party urged JPMorgan and Bank of America to back out of the IPO. Both banks, however, remained involved in the deal.
CATL has rejected the allegations, saying it has never engaged in any military-related activities. Beijing also criticised the US listing as political "suppression".
In a strategic move to minimise potential legal fallout, CATL structured the deal as a Regulation S offering, meaning shares cannot be sold to US-based investors.
Founded in 2011 in the Chinese city of Ningde, CATL flourished on the back of China's booming EV sector, strong state backing, and partnerships with major automakers including Tesla, Mercedes-Benz, BMW and Volkswagen.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
Business Standard
30 minutes ago
- Business Standard
Non-Mumbai builders tap into financial capital via redevelopment projects
Real estate developers based outside of Mumbai such as Delhi-based DLF, Bengaluru-based Prestige Estates, Puravankara, Pune-based Blackstone-backed Kolte-Patil Developers, Vascon Engineers, and Hyderabad-based Ramky Estates, are foraying into India's largest real estate market through redevelopment projects. While Mumbai has always been India's prime real estate market, policy-level incentives for redevelopments, less capital intensive nature of redevelopment business amid a lack of open land parcels, is attracting developers that are using asset-light strategies to get better realisations from high property rates. 'For developers based outside the MMR, redevelopment offers an effective route to enter the Mumbai market, given the limited availability of greenfield land. Additional attractive factors include higher FSI allowances in slum rehabilitation and society redevelopment projects, which translate to better returns on investment,' said Siddharth Vasudevan, MD, Vascon Engineers. Mumbai's redevelopment market is big enough to accomodate more players like Bengaluru-based Sobha and Ahmedabad-based Arvind Smartspaces are evaluating opportunities. According to Credai-MCHI, over 25,000 buildings across MMR are eligible for redevelopment, with the total estimated project value exceeding Rs 30,000 crore. As per Anarock, as of 2024, average property prices in MMR stood at Rs 16,600 per sq ft, while those in Bengaluru and Hyderabad stood at Rs 8,380 per sq ft and Rs 7,300 per sq ft, respectively. The prices in NCR stood at Rs 7,550 per sq ft. Vijay Agrawal, MD- investment banking, Equirus said that the average margins in real estate are around 25-30 per cent but the Mumbai market is known for higher realisation per square foot, between Rs 25,000 and Rs 1 lakh. 'In other cities, general realisation is between Rs 5,000-12,000, except in a few micro markets. Higher realisations help developers disclose higher revenue with a smaller sales area. This helps in improving their blended per sq ft realisations.' In Mumbai, a developer can book revenue of Rs 500 crore for 1 lakh sq ft of a project with a sale price of Rs 50,000 per sq ft for one project. However, in other markets, a developer will need to sell 5 lakh sq ft of area at Rs 10,000 per sq ft to achieve the same revenue, Agrawal explained. 'Listed companies can meet their topline growth targets by executing projects in this market," Sanjay Daga, CEO and MD, Anex Advisory, said. But the bright opportunity has its challenges. Redevelopment for non-Mumbai developers involves multiple stakeholders, so having a reliable team in a new market in a must. Dealing with local tenants besides higher cost of approvals, construction in smaller area of sites compared to the other cities, are other issues to name a few. 'Developers fail to underwrite the working capital requirement in Mumbai projects. A typical project in other cities is between 5 to 15 acres, while Mumbai's typical project is 0.5 to 3 acres. Construction costs in Mumbai are very steep,' said an industry expert who didn't wish to be named. To overcome these hindrances, developers are forging joint ventures with local developers who already have the land or permissions, and industry experts who hold the ability to deal with the local administration and tenants more effectively. This helps in securing faster approvals and faster project launches. DLF, for its first Mumbai project, has tied up with Trident Realty, a local real estate firm. Prestige, for its mega redevelopment project in Bandra, has joined hands with Mumbai-based Valor Estate and RC Group. Despite strong balance sheets and deep expertise, building trust among buyers will take time. 'Local developers, due to their deep-rooted presence and familiarity with these intricacies, often have an edge,' Shrinivas Rao, CEO, Vestian.
Economic Times
40 minutes ago
- Economic Times
Why aluminium prices are rising and what to expect next
Hareesh V, Head of Commodities, Geojit Investments ADVERTISEMENT Aluminium, an essential component of modern industry, plays a vital role in sectors ranging from construction and transportation to packaging and renewable energy. As of June 2025, aluminium prices are trading between $2,450 and $2,600 per ton in the key London Metal Exchange. The recent uptick—about 10–15% since January —is largely driven by renewed US-China tariffs, supply chain disruptions, and rising energy costs. The imposition of higher tariffs on aluminium imports into the US, aiming to protect domestic producers, led to a surge in commodity prices that contributed to global price volatility. Over the past decade, the aluminium market has experienced significant shifts driven by geopolitical tensions, energy prices, and evolving demand patterns—particularly influenced by China, the world's largest producer and consumer. China, which accounts for nearly 60% of global aluminium output, is experiencing a slowdown in manufacturing activity. A recent contraction in its manufacturing sector has raised concerns about reduced demand from the world's largest commodity consumer. Over the past decade, China's aluminium output has surged, supported by state-backed investments and a robust manufacturing base. However, environmental policies and energy constraints have recently led to production curbs, especially in coal-intensive regions. ADVERTISEMENT In 2025, China's aluminium demand is expected to remain relatively stable, with modest growth in the construction and EV sectors offset by a slowdown in real estate and exports. Meanwhile, supply-side reforms and energy transition policies are likely to keep production growth in check, contributing to tighter domestic balances and increased reliance on aluminium supply and demand have seen moderate growth over the last ten years. From 2015 to 2024, global aluminium demand grew at an average annual rate of 2.5%, driven by increased consumption in electric vehicles, infrastructure, and green technologies. However, supply growth has been constrained by environmental regulations, energy costs, and geopolitical disruptions. ADVERTISEMENT Aluminium prices have been notably volatile in the past decade. In 2015, prices hovered around $1,600 per metric ton, reflecting oversupply and weak demand. Prices gradually recovered, peaking above $3,000 per ton in 2021 amid post-pandemic stimulus and supply chain disruptions. Since then, prices have fluctuated due to macroeconomic uncertainty, energy costs, and trade tensions. Global aluminium mine supply has experienced moderate growth in recent years, due to rising demand for lightweight, sustainable materials and the global energy transition. However, geopolitical tensions, environmental concerns, and regulatory changes continue to pose risks to supply stability. In 2025, mine supply is expected to remain tight due to delays in new project developments and logistical challenges. ADVERTISEMENT Looking ahead, aluminium prices are expected to remain volatile through the rest of 2025. Amid persistent geopolitical tensions, constrained supply from China, and growing demand from alternative markets like India and the Middle East are likely to keep prices firm in the second half of this year. However, downside risks remain. A potential global recession, weakening industrial output, and high interest rates could dampen demand and exert downward pressure on prices. Aluminium's strategic importance continues to grow, but the market faces a complex mix of opportunities and challenges. While long-term demand remains strong, especially from green industries, short-term volatility driven by macroeconomic and geopolitical factors will likely define the aluminium landscape in 2025. ADVERTISEMENT (The author Hareesh V. is head of Commodities, Geojit Investments. The views expressed are personal.) (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
41 minutes ago
- Time of India
Why aluminium prices are rising and what to expect next
Hareesh V, Head of Commodities , Geojit Investments Aluminium, an essential component of modern industry, plays a vital role in sectors ranging from construction and transportation to packaging and renewable energy. As of June 2025, aluminium prices are trading between $2,450 and $2,600 per ton in the key London Metal Exchange. The recent uptick—about 10–15% since January —is largely driven by renewed US-China tariffs, supply chain disruptions, and rising energy costs. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Khu Pho Ba Hang: Unsold Furniture Liquidation 2024 (Prices May Surprise You) Unsold Furniture | Search Ads Learn More Undo The imposition of higher tariffs on aluminium imports into the US, aiming to protect domestic producers, led to a surge in commodity prices that contributed to global price volatility. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Over the past decade, the aluminium market has experienced significant shifts driven by geopolitical tensions, energy prices, and evolving demand patterns—particularly influenced by China, the world's largest producer and consumer. China, which accounts for nearly 60% of global aluminium output, is experiencing a slowdown in manufacturing activity. A recent contraction in its manufacturing sector has raised concerns about reduced demand from the world's largest commodity consumer. Live Events Over the past decade, China's aluminium output has surged, supported by state-backed investments and a robust manufacturing base. However, environmental policies and energy constraints have recently led to production curbs, especially in coal-intensive regions. In 2025, China's aluminium demand is expected to remain relatively stable, with modest growth in the construction and EV sectors offset by a slowdown in real estate and exports. Meanwhile, supply-side reforms and energy transition policies are likely to keep production growth in check, contributing to tighter domestic balances and increased reliance on imports. Globally, aluminium supply and demand have seen moderate growth over the last ten years. From 2015 to 2024, global aluminium demand grew at an average annual rate of 2.5%, driven by increased consumption in electric vehicles, infrastructure, and green technologies. However, supply growth has been constrained by environmental regulations, energy costs, and geopolitical disruptions. Aluminium prices have been notably volatile in the past decade. In 2015, prices hovered around $1,600 per metric ton, reflecting oversupply and weak demand. Prices gradually recovered, peaking above $3,000 per ton in 2021 amid post-pandemic stimulus and supply chain disruptions. Since then, prices have fluctuated due to macroeconomic uncertainty, energy costs, and trade tensions. Global aluminium mine supply has experienced moderate growth in recent years, due to rising demand for lightweight, sustainable materials and the global energy transition. However, geopolitical tensions, environmental concerns, and regulatory changes continue to pose risks to supply stability. In 2025, mine supply is expected to remain tight due to delays in new project developments and logistical challenges. Looking ahead, aluminium prices are expected to remain volatile through the rest of 2025. Amid persistent geopolitical tensions, constrained supply from China, and growing demand from alternative markets like India and the Middle East are likely to keep prices firm in the second half of this year. However, downside risks remain. A potential global recession , weakening industrial output, and high interest rates could dampen demand and exert downward pressure on prices. Aluminium's strategic importance continues to grow, but the market faces a complex mix of opportunities and challenges. While long-term demand remains strong, especially from green industries, short-term volatility driven by macroeconomic and geopolitical factors will likely define the aluminium landscape in 2025. (The author Hareesh V. is head of Commodities, Geojit Investments. The views expressed are personal.)
