By Scott Murdoch
SYDNEY (Reuters) – Chinese battery giant CATL is expected to raise at least $5 billion in a Hong Kong listing, according to two sources with direct knowledge of the matter.
CATL did not immediately respond to a request for comment from Reuters.
The biggest battery maker in the world filed an application to list on the Hong Kong Stock Exchange on Tuesday, saying part of the funds raised will be used to build its 7.3 billion euro ($7.53 billion) battery plant in Hungary.
A listing of the Shenzhen-listed firm would be the largest listing in Hong Kong in four years, according to Dealogic data. At $5 billion, it would be the biggest listing since Kuaishou Technology’s 2021 initial public offering that raised $6.2 billion, the data showed.
The city’s equity capital markets have languished in the past three years as a result of Chinese regulators slowing down the approval process and volatile global financial markets.
CATL’s planned float in the Chinese offshore market comes amid rising geopolitical tensions as the U.S. in January added Chinese tech companies including CATL and Tencent Holdings to a list of firms it says work with China’s military.
CATL’s Hong Kong listing plan also comes as the city sees increased interest for second listings from Chinese A-share companies, which are seeking to tap into overseas liquidity.
CATL has a market capitalisation of 1.4 trillion yuan ($191.56 billion) and its Shenzhen shares are trading about 61% higher over the past year.
($1 = 7.3085 Chinese yuan renminbi)
($1 = 0.9689 euros)
(Reporting by Scott Murdoch, additional reporting Brenda Goh in Shanghai and Ethan Wang and Shi Bu in Beijing; Editing by Sonali Paul, Kim Coghill, Kate Mayberry and Louise Heavens)
