According to a report by Reuters, Chinese battery giant Contemporary Amperex Technology Co., Ltd. (CATL) has hired several banks, including JPMorgan Chase and Bank of America, to assist with its planned listing in Hong Kong, which could become one of the largest IPOs in the Hong Kong market in 2025. Additionally, China International Capital Corporation (CICC) and CITIC Securities have also been appointed as underwriters. Due to the confidential nature of the information, sources have not disclosed further details.

IPO Scale and Timeline

The scale of CATL's Hong Kong listing has not yet been finalized, but considering its market capitalization on the Shenzhen Stock Exchange, the IPO is expected to reach several billion dollars. As of Monday's close, CATL's market cap was approximately $150 billion. CATL, JPMorgan, and Bank of America did not immediately respond to requests for comments, and CICC and CITIC Securities have also not yet replied. The company aims to complete the listing in the first half of 2025.

Geopolitical Risks and Market Trends

CATL's plan to list in Hong Kong comes amid escalating geopolitical tensions between China and the U.S. Last week, the U.S. included several Chinese tech companies, including CATL and Tencent Holdings, on a list of firms deemed to be "collaborating with the Chinese military." Meanwhile, the Hong Kong market has recently seen a surge in new stock offerings, with an increasing number of Chinese A-share companies seeking secondary listings in Hong Kong to tap into overseas liquidity. Reuters reported last December that officials from the Hong Kong Stock Exchange had discussions with several banks about accelerating plans for such secondary listings.

Financing Strategy and Market Outlook

CATL's listing plan also reflects an adjustment in its financing strategy. Previously, the company had planned to raise at least $5 billion through Swiss Global Depositary Receipts (GDRs) in 2023, but this plan was shelved due to concerns from Chinese regulators regarding large-scale financing.

As a global leader in lithium battery manufacturing, CATL's technology and market position in the renewable energy sector are unassailable. This Hong Kong listing plan not only provides the company with a more diversified financing channel but also aims to enhance its influence in the international capital market. The success of the listing will depend on how CATL balances its growth strategy and financing needs amid international market volatility and geopolitical challenges. In the future, the company may become a focal point for global investors.

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The uSMART HK app features a dedicated IPO center, offering exclusive promotions for customers to subscribe to public offerings in real time. After logging in the uSMART HK APP, select the transaction at the bottom right, click "IPO Subscription", select the IPO you want to subscribe, click "Public Subscription", fill in the subscription number and send the order.

（Source: uSMART HK）