Chinese EV battery giant CATL is considering Hong Kong IPO, says report

Asian Tech Press (Nov 22) -- Chinese EV battery giant Contemporary Amperex Technology Co. Ltd. (CATL) is considering a Hong Kong IPO, according to IFR.

The company has held internal and external discussions with financial advisors about a potential listing, which could come as early as next year, the report said, citing people familiar with the matter.

Earlier, sources said CATL planned to list in Switzerland as early as May 2023 through a global depositary receipt (GDR) offering.

However, Reuters reported in March that CATL's plan to raise at least $5 billion in Zurich listing may have been delayed.

The delay, the report said, was largely due to concerns from Chinese regulators over CATL making such a large-scale GDR offering.

Chinese regulators have raised questions about whether CATL would need to raise so much more after it has raised about 44.9 billion yuan in June 2022, the sources said.

In June last year, CATL issued 109,756,097 ordinary shares listed on the Shenzhen Stock Exchange's ChiNext market at a price of 410 yuan per share to 22 investors, including Morgan Stanley, JPMorgan Chase, Guotai Junan Securities and Hillhouse.

After deducting all issuance costs, CATL's actual fundraising in the bonus issue amounted to 44.87 billion yuan.

Founded in 2011, CATL is a battery supplier to automakers such as Tesla, Nio, Xpeng and Li Auto.

And in June 2018, the company started trading on the Shenzhen Stock Exchange under the stock code "300750".

In the first three quarters of this year, CATL topped the global EV battery market with a 36.8% share, according to Korean market research firm SNE research.

CATL on Tuesday signed a strategic memorandum of understanding with Stellantis N.V., the world's fourth-largest automotive group, to supply lithium iron phosphate batteries to the latter locally in Europe.

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