In the most extensive initial public offering (IPO) of the year, the largest manufacturer of electric vehicle (EV) batteries in the world debuted on the Hong Kong Stock Exchange. More than one-third of all EV batteries supplied globally are made by China’s Contemporary Amperex Technology Co., Ltd. (CATL), which also supplies major automakers including Tesla, Volkswagen, and Toyota.
Through the offering, the business raised over HK$35.7 billion ($4.55 billion, £3.4 billion). At the start of the market, its shares surged by almost 10%. In January, the battery manufacturer was included in a list of companies the US Department of Defence claims collaborate with China’s military. CATL disputes this, saying it was a “mistake” to be on the list.
According to Neil Beveridge, head of research for Asia at Bernstein, given the scale of the listing, the stock’s performance was excellent in what is expected to be a significant initial public offering (IPO) for Hong Kong.
The firm is already listed on the Shenzhen Stock Exchange in China with a valuation of over 1 trillion yuan ($138.7 billion, £104.3 billion). It was established in 2011 in Ningde, in eastern China, and grew quickly as a result of the nation’s EV sector development. The massive battery company has 13 production facilities worldwide and employs over 100,000 people.
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