Blacklisted in the US, Chinese battery giant raises billions in Hong Kong trading debut

China’s Contemporary Amperex Technology Co. Ltd. (CATL), nan world’s biggest electrical conveyance artillery maker, saw its shares soar connected nan first trading time successful Hong Kong aft nan institution made its debut location connected Tuesday. 

The secondary listing of CATL’s shares raised astatine slightest $4.6 cardinal (€4.08bn) for nan company, which already has its A-shares traded successful mainland China, successful Shenzhen. 

The coagulated reception for CATL successful Hong Kong suggests location is still an appetite among world investors for starring Chinese manufacturers contempt waste and acquisition tensions betwixt Beijing and Washington.

It sold much than 135 cardinal shares astatine their maximum connection price, HK$263 (€29.8) each. Its shares roseate aft they started trading astatine HK$296 (€33.56), 12.5% higher than their connection price. They were up astir 17% by mid-afternoon section time.

CATL held a astir 38% world marketplace stock for EV batteries successful 2024, its listing documents showed. It supplies automakers for illustration Tesla, Volkswagen, BMW, Mercedes-Benz, Ford, Toyota and Honda.

Blacklisted successful nan US didn't extremity CATL raising billions

The institution has faced unit from nan US In January, nan US Defense Department added it to a database of companies it says person ties to China's military, an accusation that CATL denied. It called nan inclusion a "mistake."

In April, John Moolenaar, chairperson of nan US House Select Committee connected China, wrote to nan CEOs of JPMorgan Chase & Co. and Bank of America urging them to retreat from their activity connected CATL's IPO. However, nan 2 banks remained involved.

In nan US, Ford Motor Co. is licensing exertion from CATL to build batteries, but nan scheme faces guidance from immoderate Republican lawmakers, who person expressed interest that nan Chinese institution could use from US taxation dollars.

As a consequence of nan US blacklist, nan stock offering excluded onshore US investors. However, galore ample US organization investors person offshore accounts that allowed them to participate. The nan caller listing gives world investors easier entree to nan company’s shares than before.

CATL said successful a property release: “This offering attracted a divers scope of investors from 15 countries and regions globally, including sovereign wealthiness funds, business capital, semipermanent institutions, security capital, and multi-strategy funds.”

CATL raising money for its European investments

The institution said it plans to usage astir of nan money raised to build its factories successful Germany and successful Hungary, to localise accumulation successful Europe, arsenic portion of a strategy to trim nan effect of import tariffs and summation higher marketplace stock successful Europe. 

CATL recorded a profit of CN¥ 55.3bn (€6.8bn) successful 2024, up 16.8% from 2023. Investors successful nan US expect nan institution to make an operating profit of astir $10.6bn (€9.4bn), according to nan Wall Street Journal, citing FactSet.

Government officials, including Hong Kong's Financial Secretary Paul Chan, attended its listing ceremonial successful nan city's vibrant business district, Central, connected Tuesday. The company's president Robin Zeng said his business is committed to becoming a zero-carbon exertion company.

"Listing successful Hong Kong intends we are much broadly integrated into nan world superior markets, and it's besides a caller starting constituent for america to beforehand nan world zero-carbon economy," Zeng said.