China’s CATL jumps
CATL Shares Surge After \$4.6 Billion Hong Kong Listing, Marking World’s Largest IPO of 2025
Shares of Chinese electric vehicle battery giant CATL surged as much as 18.4% above the subscription price during their debut on the Hong Kong Stock Exchange. The company raised $4.6 billion through the listing, pricing shares at HK$263 each. On opening day, they climbed to as high as HK$311.40, reflecting strong investor enthusiasm for one of the most anticipated public offerings of the year.
The deal marks the largest listing globally so far in 2025 and is also the biggest in Hong Kong since Midea Group’s offering last year. According to LSEG data, the CATL IPO brings total fundraising in Hong Kong to $7.73 billion this year—significantly higher than the $1.05 billion raised by this time in 2024. The listing is being seen as a much-needed boost to Hong Kong’s capital markets, which have seen a lull in large-scale IPO activity recently.
Investor interest was intense, with the institutional tranche oversubscribed 15.2 times and the retail portion oversubscribed by 151 times. U.S. investors participated using offshore accounts, highlighting global confidence in CATL’s long-term growth potential. The company had initially planned to raise around $4 billion but increased the size of the deal due to overwhelming demand. A green shoe option could further raise the total proceeds to $5.3 billion.
CATL plans to use the majority of the funds to expand its manufacturing footprint in Europe, including a new battery plant in Hungary. The expansion is key to serving major automakers like BMW, Stellantis, and Volkswagen. By building local capacity in Europe, CATL aims to strengthen its position in the global EV supply chain and support the growing demand for clean energy technologies.
At the listing ceremony, CATL Chairman Robin Zeng emphasized the significance of the IPO as a gateway to deeper integration with global capital markets. He called the listing a new starting point in the company’s journey to advance the global zero-carbon economy. Hong Kong Exchange CEO Bonnie Chan and executives from lead sponsors like CICC and JPMorgan echoed that sentiment, stating the deal signals renewed momentum for Hong Kong as a premier fundraising hub for Chinese industry leaders.
