Contemporary Amperex Technology Co. Ltd. (CATL), the leading global producer of electric vehicle batteries, is exploring investor interest for a share sale that could raise $5 billion, potentially marking the largest listing in Hong Kong in recent years.
CATL initiated investor education meetings on Tuesday, as indicated by deal terms reviewed by Bloomberg. The trading debut in Hong Kong might occur as early as this month, according to anonymous sources who were not authorized to discuss the details publicly.
Despite market disruptions caused by U.S. President Donald Trump’s tariffs, CATL is progressing with its offering. Success in this venture is expected to boost investor confidence in Hong Kong and Chinese firms, whose shares have lagged behind international peers amid the tariff-induced market instability.
Chinese corporations, however, seem to be managing the trade conflict effectively, continuing with share sales last month, while similar activities in the U.S. and Europe have declined.
This development follows a request from a U.S. congressional committee in April, urging Bank of America Corp. and JPMorgan Chase & Co. to withdraw from the planned listing. Nevertheless, both banks remain involved, as noted in CATL’s post-listing-hearing documents dated Tuesday.
John Moolenaar, Chair of the House Select Committee on the Chinese Communist Party, addressed letters to the CEOs of the two banks, flagging the company’s inclusion in a Pentagon blacklist in January due to alleged ties to the Chinese military. A spokesperson for CATL refuted these allegations, asserting the company has no military-related business or activities.
If successful, CATL’s listing will follow as the largest globally since Lineage Inc.’s $5.1 billion deal last year and the biggest in Hong Kong since Kuaishou Technology’s $6.2 billion offering in 2021, based on Bloomberg data.
Hong Kong listings have garnered $2.7 billion so far this year, according to Bloomberg data. CATL’s anticipated proceeds could nearly triple this amount, and significant deals, such as that of Jiangsu Hengrui Pharmaceuticals Co., are also progressing. Bloomberg Intelligence estimates suggest Hong Kong listing proceeds could exceed $22 billion this year.
In April, CATL reported strong first-quarter results, with net income growing at its fastest in almost two years. CATL, a major supplier to Tesla Inc. and other leading automakers, indicated that U.S. tariffs have had minimal impact, with the company’s U.S. market exposure described as relatively small.
The share sale is aimed at supporting CATL’s international expansion in Europe, with substantial funds directed toward completing a Hungarian factory capable of producing 100 gigawatt-hours annually to supply clients like Mercedes-Benz. CATL holds approximately 38% market share, while BYD Co., primarily serving its own vehicles, follows at about 17%.
Separately, CATL is seeking a loan of about $1 billion to finance an investment in Indonesia, as reported by informed sources.
This year, CATL’s shares have dropped 12% in Shenzhen, compared to a 3.4% decline in the CSI 300 Index.
This report was initially published on Fortune.com.
