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Business Times
20-05-2025
- Automotive
- Business Times
CATL rises in Hong Kong trading debut in world's top listing in 2025
[HONG KONG] Contemporary Amperex Technology Co Limited (CATL) rose in its Hong Kong trading debut after the Chinese battery giant wrapped up the world's biggest listing this year by raising HK$35.7 billion (S$5.9 billion) despite being blacklisted by the Pentagon and grinding through geopolitical storms. Shares of CATL, as the largest maker of electric vehicle (EV) batteries is known, opened at HK$296 each on Tuesday (May 20), up 13 per cent from their listing price of HK$263. Strong demand had allowed the company to price the stock at the top marketed price, and the shares rose in grey-market trading on Monday. For investors, the allure of buying into a blue-chip stock at the forefront of EV technology outweighed the risks of getting caught up in the ongoing turbulence in Sino-US relations. The success of the stock offering, which may increase to US$5.3 billion if CATL exercises an option to do so, single-handedly doubled Hong Kong's proceeds from listings this year and could embolden other companies to go public. CATL is 'a true champion enabling the energy transition, a symbol of China's success as a global green leader', said Karine Hirn, a partner at East Capital Group. 'This will be met by enormous interest.' Priced at around 17 times current earnings multiples, CATL's Hong Kong shares have room to rise 50 per cent, driven by strong earnings and attractive valuations, said Johnson Wan, the head of China industrials research at Jefferies in Hong Kong. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'There is only a small slice of pie left for everyone else to buy,' he said. 'It's a no-brainer buy.' CATL supplies batteries to top-tier customers such as Tesla, Volkswagen, Ford Motor and Mercedes-Benz Group. It has a market share of roughly 38 per cent in electric-car batteries, comfortably ahead of its closest challenger, top EV maker BYD's 17 per cent, according to SNE Research. The Ningde, Fujian-based company generated sales of US$50 billion and net income of US$7 billion last year. And it plans to build on that, recently unveiling batteries that can charge 520 km of range in five minutes and up to 1,500 km on a full charge. The funding, much of it for a US$7.6 billion overseas expansion in Europe, will be used to fuel its growth outside China, where profit margins are juicier. Its continued growth has enriched its founders, top investors and executives, making them some of the wealthiest people in the world. Four Chinese businessmen, including chairman Robin Zeng, have amassed a combined fortune of more than US$73 billion – mainly derived from their stakes in the company – according to the Bloomberg Billionaires Index. CATL's rise has not come without obstacles. The company was put on a Pentagon blacklist in January based on allegations of CATL's links to the Chinese military – something the company has denied repeatedly. In April, a US congressional committee publicly called on JPMorgan Chase and Bank of America to stop working on the listing because of CATL's alleged military links – again, denied by the company. But both American banks stuck with the deal. The Chinese company's management has said CATL expects 'little impact' from the risk of US tariffs. That stands in stark contrast to a growing list of automakers from Toyota Motor to Stellantis and General Motors warning of billions in extra costs. CATL priced its Hong Kong stock at a smaller discount to its Shenzhen-traded shares, when compared with previous second listings: Appliance maker Midea Group last year sold its stock in its US$4.6 billion Hong Kong listing at a discount of about 20 per cent, while China Tourism Group Duty Freedid so at around 27.5 per cent in 2022. More broadly, Hong Kong shares typically trade at a 25 per cent discount to their stocks on the mainland, according to the Hang Seng Stock Connect China AH Premium Index. 'People like the fact that now you can get access to one of the best companies in China without having to go to A-shares,' said Eugene Hsiao, head of China equity strategy and China Autos at Macquarie Capital. 'I think this is why they did not have to come out with massive discounts. They knew the demand was there.' CATL will be the latest firm to go ahead with a share sale after US President Donald Trump's broad tariff rollout. Even before the latest 90-day pause on many of the tariffs, many Chinese companies had gone ahead with their listing plans as they sought cash from investors. CATL's share offering will help Hong Kong's market for listings this year surge to over US$22 billion, according to Bloomberg Intelligence. BLOOMBERG
Business Times
20-05-2025
- Automotive
- Business Times
CATL rises in Hong Kong trading debut after world's top listing in 2025
[HONG KONG] Contemporary Amperex Technology Co Limited (CATL) rose in its Hong Kong trading debut after the Chinese battery giant wrapped up the world's biggest listing this year by raising HK$35.7 billion (S$5.9 billion) despite being blacklisted by the Pentagon and grinding through geopolitical storms. Shares of CATL, as the largest maker of electric vehicle (EV) batteries is known, opened at HK$296 each oon Tuesday (May 20), up 13 per cent from their listing price of HK$263. Strong demand had allowed the company to price the stock at the top marketed price, and the shares rose in grey-market trading on Monday. For investors, the allure of buying into a blue-chip stock at the forefront of EV technology outweighed the risks of getting caught up in the ongoing turbulence in Sino-US relations. The success of the stock offering, which may increase to US$5.3 billion if CATL exercises an option to do so, single-handedly doubled Hong Kong's proceeds from listings this year and could embolden other companies to go public. CATL is 'a true champion enabling the energy transition, a symbol of China's success as a global green leader', said Karine Hirn, a partner at East Capital Group. 'This will be met by enormous interest.' Priced at around 17 times current earnings multiples, CATL's Hong Kong shares have room to rise 50 per cent, driven by strong earnings and attractive valuations, said Johnson Wan, head of China industrials research at Jefferies in Hong Kong. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'There is only a small slice of pie left for everyone else to buy,' said Wan. 'It's a no-brainer buy.' CATL supplies batteries to top-tier customers such as Tesla, Volkswagen, Ford Motor and Mercedes-Benz Group. It has a market share of roughly 38 per cent in electric-car batteries, comfortably ahead of its closest challenger, top EV maker BYD's 17 per cent, according to SNE Research. The Ningde, Fujian-based company generated sales of US$50 billion and net income of US$7 billion last year. And it plans to build on that – recently unveiling batteries that can charge 520 km of range in five minutes and up to 1,500 km on a full charge. The funding, much of it for a US$7.6 billion overseas expansion in Europe, will be used to fuel its growth outside China, where profit margins are juicier. Its continued growth has enriched its founders, top investors and executives, making them some of the wealthiest people in the world. Four Chinese businessmen, including chairman Robin Zeng, have amassed a combined fortune of more than US$73 billion – mainly derived from their stakes in the company – according to the Bloomberg Billionaires Index. CATL's rise has not come without obstacles. The company was put on a Pentagon blacklist in January based on allegations of CATL's links to the Chinese military – something the company has denied repeatedly. In April, a US congressional committee publicly called on JPMorgan Chase and Bank of America to stop working on the listing because of CATL's alleged military links – again, denied by the company. But both American banks stuck with the deal. The Chinese company's management has said CATL expects 'little impact' from the risk of US tariffs. That stands in stark contrast to a growing list of automakers from Toyota Motor Corp. to Stellantis NV and General Motors warning of billions in extra costs. CATL priced its Hong Kong stock at a smaller discount to its Shenzhen-traded shares, when compared with previous second listings: Appliance maker Midea Group last year sold its stock in its US$4.6 billion Hong Kong listing at a discount of about 20 per cent, while China Tourism Group Duty Freedid so at around 27.5 per cent in 2022. More broadly, Hong Kong shares typically trade at a 25 per cent discount to their stocks on the mainland, according to the Hang Seng Stock Connect China AH Premium Index. 'People like the fact that now you can get access to one of the best companies in China without having to go to A-shares,' said Eugene Hsiao, head of China equity strategy and China Autos at Macquarie Capital. 'I think this is why they did not have to come out with massive discounts. They knew the demand was there.' CATL will be the latest firm to go ahead with a share sale after US President Donald Trump's broad tariff rollout. Even before the latest 90-day pause on many of the tariffs, many Chinese companies had gone ahead with their listing plans as they sought cash from investors. CATL's share offering will help Hong Kong's market for listings this year surge to over US$22 billion, according to Bloomberg Intelligence. BLOOMBERG
Yahoo
20-05-2025
- Automotive
- Yahoo
CATL Rises in HK Trading Debut After World's Top Listing in 2025
(Bloomberg) -- Contemporary Amperex Technology Co. Ltd. rose in its Hong Kong trading debut after the Chinese battery giant wrapped up the world's biggest listing this year by raising HK$35.7 billion ($4.6 billion) despite being blacklisted by the Pentagon and grinding through geopolitical storms. America, 'Nation of Porches' NJ Transit Train Engineers Strike, Disrupting Travel to NYC NYC Commuters Brace for Chaos as NJ Transit Strike Looms NJ Transit Makes Deal With Engineers, Ending Three-Day Strike Shares of CATL, as the largest maker of electric-vehicle batteries is known, opened at HK$296 each on Tuesday, up 13% from their listing price of HK$263. Strong demand had allowed the company to price the stock at the top marketed price, and the shares rose in gray-market trading on Monday. For investors, the allure of buying into a blue-chip stock at the forefront of electric-vehicle technology outweighed the risks of getting caught up in the ongoing turbulence in Sino-US relations. The success of the stock offering, which may increase to $5.3 billion if CATL exercises an option to do so, single-handedly doubled Hong Kong's proceeds from listings this year and could embolden other companies to go public. CATL is 'a true champion enabling the energy transition, a symbol of China's success as a global green leader,' said Karine Hirn, a partner at East Capital Group. 'This will be met by enormous interest.' Priced at around 17 times current earnings multiples, CATL's Hong Kong shares have room to rise 50%, driven by strong earnings and attractive valuations, said Johnson Wan, head of China industrials research at Jefferies in Hong Kong. 'There is only a small slice of pie left for everyone else to buy,' said Wan. 'It's a no-brainer buy.' CATL supplies batteries to top-tier customers such as Tesla Inc., Volkswagen AG, Ford Motor Co. and Mercedes-Benz Group AG. It has a market share of roughly 38% in electric-car batteries, comfortably ahead of its closest challenger, top EV maker BYD Co.'s 17%, according to SNE Research. The Ningde, Fujian-based company generated sales of $50 billion and net income of $7 billion last year. And it plans to build on that — recently unveiling batteries that can charge 520km (323 miles) of range in 5 minutes and up to 1,500km on a full charge. The funding, much of it for a $7.6 billion overseas expansion in Europe, will be used to fuel its growth outside China, where profit margins are juicier. Its continued growth has enriched its founders, top investors and executives, making them some of the wealthiest people in the world. Four Chinese businessmen, including Chairman Robin Zeng, have amassed a combined fortune of more than $73 billion — mainly derived from their stakes in the company — according to the Bloomberg Billionaires Index. CATL's rise hasn't come without obstacles. The company was put on a Pentagon blacklist in January based on allegations of CATL's links to the Chinese military — something the company has denied repeatedly. In April, a US congressional committee publicly called on JPMorgan Chase & Co. and Bank of America Corp. to stop working on the listing because of CATL's alleged military links — again, denied by the company. But both American banks stuck with the deal. The Chinese company's management has said CATL expects 'little impact' from the risk of US tariffs. That stands in stark contrast to a growing list of automakers from Toyota Motor Corp. to Stellantis NV and General Motors Co. warning of billions in extra costs. CATL priced its Hong Kong stock at a smaller discount to its Shenzhen-traded shares, when compared with previous second listings: Appliance maker Midea Group Co. last year sold its stock in its $4.6 billion Hong Kong listing at a discount of about 20%, while China Tourism Group Duty Free Corp. did so at around 27.5% in 2022. More broadly, Hong Kong shares typically trade at a 25% discount to their stocks on the mainland, according to the Hang Seng Stock Connect China AH Premium Index. 'People like the fact that now you can get access to one of the best companies in China without having to go to A-shares,' said Eugene Hsiao, head of China equity strategy and China Autos at Macquarie Capital. 'I think this is why they didn't have to come out with massive discounts. They knew the demand was there.' CATL will be the latest firm to go ahead with a share sale after US President Donald Trump's broad tariff rollout. Even before the latest 90-day pause on many of the tariffs, many Chinese companies had gone ahead with their listing plans as they sought cash from investors. CATL's share offering will help Hong Kong's market for listings this year surge to over $22 billion, according to Bloomberg Intelligence. --With assistance from Danny Lee, Filipe Pacheco, Dave Sebastian and Kevin Dharmawan. Why Apple Still Hasn't Cracked AI Anthropic Is Trying to Win the AI Race Without Losing Its Soul Microsoft's CEO on How AI Will Remake Every Company, Including His Cartoon Network's Last Gasp DeepSeek's 'Tech Madman' Founder Is Threatening US Dominance in AI Race ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
