CATL, World’s Top Battery Maker Secures Largest IPO of 2025 to Fund $7.6 Billion European Factory

Contemporary Amperex Technology Co. Limited (CATL), the world’s largest electric vehicle battery manufacturer, made a powerful debut on the Hong Kong Stock Exchange on Tuesday, May 20, 2025.

The Chinese battery giant saw its shares surge 16.4% above the offer price, closing at HK$306.20 after opening at HK$296. The company raised HK$35.7 billion ($4.6 billion) in what stands as the largest public offering globally this year.

Strong investor demand drove the institutional tranche to be oversubscribed 15.2 times, while the retail portion saw an astounding 151 times oversubscription. The offering could potentially increase to $5.3 billion if the “green shoe” option is exercised.

“This listing signifies our deeper integration into the global capital markets and marks a new milestone in our mission to drive the global zero-carbon economy,” said Robin Zeng, CATL’s founder and chairman during the listing ceremony.

The company plans to use approximately 90% of the proceeds to fund its battery manufacturing facility in Debrecen, Hungary. CATL continues to strengthen its dominant position in the global EV battery market.

The company held a 38% market share in 2024, up from 36% the previous year. Its batteries power approximately one-third of all electric vehicles worldwide, equating to about 17 million vehicles.

CATL Q1 2025 Results & Global Expansion Update

The company reported impressive financial results for the first quarter of 2025. Net profit jumped 32.85% year-on-year to 13.96 billion yuan ($1.9 billion), while revenue grew 6.18% to 84.7 billion yuan.

The gross profit margin improved to 24.4%, reflecting both year-on-year and quarter-on-quarter growth. The successful listing comes despite CATL facing challenges in the United States.

In January 2025, the U.S. Department of Defense added CATL to its “Chinese military company” list, an allegation the company firmly denies. CATL stated it “has never engaged in any military-related business or activities” and plans to address what it calls a “false designation.”

CATL’s global expansion strategy focuses heavily on Europe. Beyond the Hungarian facility, the company has formed a joint venture with Stellantis to build a lithium iron phosphate battery plant in Spain with an investment of up to €4.1 billion ($4.33 billion). The facility is scheduled to begin production by the end of 2026.

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