Chinese battery giant Contemporary Amperex Technology Co Ltd (CATL, 寧德時代) yesterday ended its first day on the Hong Kong Stock Exchange more than 16 percent higher, having raised US$4.6 billion in the world’s biggest initial public offering (IPO) this year.
A global leader in the sector, CATL produces more than one-third of all electric vehicle batteries sold worldwide. It works with major brands including Tesla Inc, Mercedes-Benz AG, BMW AG and Volkswagen AG.
However, it has also found itself in the crossfire of a superpower clash between Washington and Beijing for tech dominance, with the US putting it on a blacklist naming it as a military company.
Photo: Bloomberg
The firm is already traded in the southern Chinese city of Shenzhen, and its plan for a secondary listing in Hong Kong was announced in December last year.
In morning trading its Hong Kong shares hit a high of HK$311.40, up 18.4 percent from its listing price of HK$263.00.
The stock closed at HK$306.20.
“This listing signifies our deeper integration into the global capital markets and marks a new milestone in our mission to drive the global zero carbon economy,” CATL founder and chairman Robin Zeng (曾毓群) said at the firm’s listing ceremony yesterday.
The raised funds could be used to accelerate its overseas expansion, including building its second European factory in Hungary after launching its first in Germany in January 2023.
The strong interest in the company’s shares come even as it comes under the spotlight in the US.
In a list issued in January by the US Department of Defense, CATL was designated as a “Chinese military company.”
The US House of Representatives Select Committee on the Chinese Communist Party highlighted this inclusion in letters to two Wall Street banks last month, urging them to withdraw from the IPO deal over its alleged links to the military.
However, the banks — JPMorgan Chase & Co and Bank of America Corp — remain onboard.
Beijing has denounced the list as “suppression,” while CATL denied engaging “in any military related activities.”
CATL also said in filings this month that it was “proactively engaging” with the Pentagon to “address the false designation,”
Yesterday’s blockbuster listing is also a boon for Hong Kong’s stock exchange, which is eager for the return of big-name Chinese listings as it looks to regain its crown as the world’s top venue for IPOs.
Data from the Hong Kong Stock Exchange shows it is processing dozens of applications from Chinese companies this year.
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