Contemporary Amperex Technology Co. Limited (CATL), a prominent global manufacturer of power batteries, has filed for a secondary listing on the Hong Kong Stock Exchange. The initial prospectus suggests that the IPO is expected to raise at least $5 billion, making it Hong Kong’s largest public offering in four years.
CATL has sustained its leading position in the global power battery market for eight consecutive years and has been the top player in the energy storage battery sector for three straight years. As of September 30, the company operates six research and development centers and thirteen battery manufacturing bases worldwide, supported by service networks in 64 countries and regions.
By the end of November 2024, approximately 17 million vehicles globally were equipped with CATL’s batteries, accounting for about one in every three new energy vehicles (NEVs). According to data from South Korean market research firm SNE Research, CATL’s installed EV battery volume reached 339.3 GWh in 2024, representing a 31.7% increase from 257.7 GWh in 2023. This growth has secured CATL a 37.9% share of the global EV battery market, followed by BYD with a 17.2% share.
The Hong Kong IPO will involve major financial institutions, including BofA Securities, CICC, China Securities International, JP Morgan, Goldman Sachs, Morgan Stanley, and UBS. This listing is part of CATL’s strategy to further its globalization efforts and establish a platform for international capital operations.
In addition to its dominance in the EV battery market, CATL’s batteries power 72% of China’s high-end NEVs and 80% of new energy buses. The company reported an annualized production capacity of 646 GWh in 2024, the largest globally.
For 2024, CATL projects a net income between RMB 49 billion ($6.7 billion) and RMB 53 billion, marking an increase of 11.06% to 20.12% from 2023. However, the company anticipates a decline in revenue, expecting RMB 356 billion to RMB 366 billion, a decrease of 11.20% to 8.71% from RMB 400.9 billion in 2023. This revenue decline is attributed to lower prices of raw materials such as lithium carbonate, despite increased sales of battery products.
Since its initial listing on the Shenzhen Stock Exchange on June 11, 2018, CATL’s stock has risen approximately 70% for the full year 2024. On the day of the IPO filing, shares closed down 2.57% at RMB 251.8 each, with a market capitalization of RMB 1.11 trillion.
Source: cnevpost.com
