CATL raises around €4.1 billion in Hong Kong IPO

Chinese battery giant CATL has raised around €4.1 billion through its initial public offering on the Hong Kong Stock Exchange. The total could rise to approximately €4.7 billion if certain conditions are met.

This marks the largest IPO of 2025 to date. The share price was set at 263 Hong Kong dollars (around €30) – at the upper end of the targeted range. A total of 125.4 million shares were allocated to institutional investors, with 10.16 million shares going to private investors. CATL was previously listed on the less internationally accessible Shenzhen Stock Exchange.

As revealed in CATL’s February IPO filing, part of the proceeds will be used to help finance the construction of a battery cell factory in Hungary. The Debrecen-based site is currently under development and is set to have an annual production capacity of 100 GWh. Total investment at the location is expected to reach €7.3 billion. The battery plant will be located near BMW’s new Debrecen factory, which will produce vehicles based on the ‘Neue Klasse’ platform. The site will also become CATL’s second battery factory in Europe after the facility near Erfurt, Germany.

The size of the Hong Kong IPO could yet increase to a volume of around €4.7 billion if a so-called greenshoe option results in the sale of an additional 17.7 million shares.

CATL remains by far the most dominant supplier of batteries for electric vehicles. Data from South Korean market research firm SNE Research shows that CATL secured a 38 per cent global share of the EV battery market in 2024. In China, the company’s market share is reported to be close to 50 per cent.

reuters.com