CATL’s Record $5.3B Share Sale Tests Hong Kong Market as U.S. Blacklist Roils Trade Ties

Contemporary Amperex Technology (CATL), the world’s largest electric vehicle battery maker, opened subscriptions Monday for a Hong Kong listing aiming to raise up to 41 billion Hong Kong dollars (5.3 billion USD), the largest global IPO of 2025.

The Shenzhen-based firm, which controls 36.8% of the global EV battery market, priced shares at 263 Hong Kong dollars each, slightly below its mainland China closing price, according to Hong Kong Stock Exchange filings.

The offering faced immediate institutional demand, with cornerstone investors like Sinopec, Kuwait’s sovereign fund, and Hillhouse Capital committing 2.6 billion USD.

CATL secured a rare waiver from Hong Kong exchange rules, allowing it to bypass retail investor clawback provisions and prioritize institutional allocations.

Proceeds will fund a 7.6 billion euro (8.2 billion USD) Hungarian factory to supply European automakers like Mercedes-Benz and BMW, accelerating its push to dominate Western markets.

Geopolitical tensions shadow the deal. In January 2025, the U.S. Defense Department added CATL to its Chinese Military Companies blacklist, alleging undisclosed ties to China’s military, a claim the company calls factually baseless.

While the designation does not block commercial sales, it complicates partnerships with U.S. firms like Tesla, Ford, and GM, which license CATL’s technology for stateside battery production.

CATL’s IPO Faces Legal Threats and U.S.-China Tensions

CATL has threatened legal action to challenge the listing, calling it a strategic move to curb China’s clean energy leadership. The IPO tests Hong Kong’s resilience as a financial hub.

It doubles the city’s 2025 fundraising total to over 22 billion USD, per Bloomberg Intelligence, despite U.S.-China trade friction.

CATL structured the offering under Regulation S, barring U.S. onshore investors, a precautionary measure reflecting Washington’s escalating scrutiny.

JPMorgan and Bank of America defied congressional pressure to withdraw as underwriters, highlighting Wall Street’s reliance on Chinese deals. CATL’s expansion comes as U.S. tariffs on Chinese EVs hit 100%, with Europe considering similar measures.

The Hungary plant, set to open in late 2025, will produce batteries exempt from EU tariffs if local content thresholds are met. Meanwhile, CATL’s Shenzhen shares rose 3.5% Monday, valuing the firm at 168 billion USD, nearly triple Tesla’s market cap.

The listing underscores China’s tightening grip on green tech supply chains. CATL’s low 0.2% underwriting fee, far below standard 1-2% rates, signals its bargaining power over global banks.

With rivals like BYD holding just 17% market share, the IPO cements CATL’s position as the indispensable battery supplier in an electrifying world, even as geopolitical walls rise around it.