CATL gets approval for Hong Kong listing

It could raise at least $5b.

Electric vehicle battery maker Contemporary Amperex Technology Co. Ltd. (CATL) has received approval from Hong Kong regulators to move forward with a listing that could raise at least $5b, potentially the largest global offering of the year.

The approval, confirmed by a CATL spokesperson to Bloomberg, paves the way for the company to start meeting with investors to assess demand and finalise details like pricing. The listing could occur as early as May.

At $5b, CATL’s offering would be the biggest this year and Hong Kong’s largest IPO since Kuaishou Technology’s 2021 debut. The success of this offering is expected to impact investor confidence in both Hong Kong and Chinese companies amid ongoing market volatility, the report said.

The approval follows clearance from China’s securities regulator and comes as CATL faces challenges to its global expansion due to rising China-U.S. tensions. The company was added to a U.S. Defense Department list of firms with alleged Chinese military ties earlier this year, which could discourage U.S. businesses from engaging with CATL.

Despite an 18% drop in its Shenzhen stock this year, CATL’s Hong Kong listing is seen as a key move in its international growth strategy.