CATL Launches in Hong Kong with Landmark IPO, Signaling Ambitious Global Expansion

On May 20, 2025, CATL (03750.HK), a leading global battery manufacturer, officially debuted on the main board of the Hong Kong Stock Exchange. The company’s H-share listing marks one of the most significant public offerings in recent years and could become the largest global IPO of the year. Following the publication of its prospectus on May 12, the company set its offer price at HK$263 per share on May 15, resulting in an expanded offering size of approximately 135.7 million shares. This equates to a capital raise of USD 4.6 billion, with the potential to increase to USD 5.3 billion if the over-allotment option is fully exercised.

The IPO attracted strong interest from prominent cornerstone investors, including major energy firms, sovereign wealth funds, and leading institutional investors. Among them were Sinopec, the Kuwait Investment Authority, and Hillhouse Capital, each contributing up to USD 500 million and USD 200 million respectively. In total, cornerstone investors committed over HK$20.3 billion, representing more than 40% of the fundraising amount. Other major backers included UBS, Oaktree Capital, Future Asset, and the Royal Bank of Canada, reflecting broad-based confidence in the company's long-term prospects.

Despite a decline in revenue in 2024, CATL (03750.HK) reported strong profitability. Its annual operating revenue reached RMB 362.01 billion, down 9.7% year-over-year, while net profit attributable to shareholders rose by 15.01% to RMB 50.75 billion. In the first quarter of 2025, the company showed further momentum, with revenue increasing by 6.18% year-over-year to RMB 84.71 billion and net profit surging by 32.85% to RMB 13.96 billion. These figures highlight the company's resilient earnings power and operational efficiency amid evolving global demand.

The proceeds from the IPO are primarily allocated to support the first and second phases of the company’s battery production project in Hungary. According to the company’s filing, approximately 90% of the raised capital will fund this European expansion, enhancing localized production capacity and solidifying CATL (03750.HK)'s leadership in the global clean energy supply chain. This marks a continuation of the company’s overseas strategy, which has been advancing steadily. In December 2024, the company entered a joint venture with automotive giant Stellantis to establish a battery plant in Spain, making it CATL (03750.HK)'s third major facility in Europe. By the end of 2024, the company operated 13 battery production bases worldwide.

Since its initial listing on the mainland, CATL (03750.HK) has demonstrated a strong commitment to shareholder returns. The company has distributed nearly RMB 60 billion in cumulative cash dividends, with payout ratios of 50% in both 2023 and 2024. In April 2025, the company initiated a share repurchase program with a ceiling of RMB 8 billion. By the end of that month, RMB 1.55 billion in shares had already been bought back.

Analysts view the Hong Kong listing as strategically significant. According to research from Bank of Communications International, the dual listing structure (A+H shares) allows CATL (03750.HK) to access both domestic and international capital, while bolstering its overseas manufacturing capabilities and R&D efforts. It also offers a hedge against geopolitical and trade uncertainties through localized production in Europe. This listing serves not only as a milestone for the company but also as a benchmark for Chinese enterprises seeking global expansion through capital markets.

The efficiency with which CATL (03750.HK) executed its IPO has also drawn attention. From the initial application on February 11 to its debut on May 20, the entire process took just over three months. The company received approval from the China Securities Regulatory Commission on March 25, further underscoring the regulatory and institutional support behind the listing.

From a valuation perspective, the IPO priced the H-shares at a price-to-earnings ratio of approximately 21 times, aligning with its A-share valuation and placing it at the lower end of the industry range. Industry experts such as Shenzhen Xinlicheng General Manager Lai Xubo noted that the narrow discount between the A- and H-shares—about 5%—is one of the lowest among dual-listed stocks. Given the company’s robust fundamentals and high-growth outlook, a 5% to 10% increase on the first day of trading is widely anticipated.

CATL (03750.HK)'s listing in Hong Kong marks a critical step in its long-term global strategy. It reflects not only the confidence of international investors in the company’s business model but also the broader momentum of the global energy transition. As it strengthens its presence in Europe and deepens its technological capabilities, the company continues to set new standards for Chinese firms expanding into global markets.