China’s CATL poised to pick banks for US$5 billion Hong Kong share sale

World’s top maker of EV batteries is considering a second listing in Hong Kong that could help it raise at least US$5 billion

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A CATL sign stands outside its research and development hub and the Chinese battery maker’s headquarters in Ningde, Fujian province, China, on November 8, 2024. Photo: Reuters

Published: 3:16pm, 13 Jan 2025

Contemporary Amperex Technology Limited (CATL) is poised to hire Bank of America, China International Capital Corporation (CICC), CSC Financial and JPMorgan Chase as lead arrangers for a second listing in Hong Kong this year, according to people familiar with the matter.

Other banks are likely to be added for what could be one of the largest offerings in Hong Kong in recent years, the people said, asking not to be identified because the deliberations are private.

CATL, the world’s top maker of electric-vehicle batteries, has been considering a second listing in Hong Kong as soon as the first half of this year that could help it raise at least US$5 billion, Bloomberg News has reported. The company’s board approved the second listing in December, pending approval from shareholders and regulators.

Considerations are ongoing, and details such as the size of any offering, line-up of banks and timeline may change, the people said.

Representatives for CATL, Bank of America and JPMorgan declined to comment, while CICC and CSC, did not immediately respond to requests for comment.

Based in southeast China’s Fujian province and a major supplier to Tesla, CATL trades on the Shenzhen Stock Exchange. Its shares have dropped 7.2 per cent this year, giving the company a market value of about US$150 billion.

The company, along with Tencent Holdings, was recently blacklisted by the US for alleged links to the Chinese military. CATL said in a statement that it is not engaged in any military-related activities.