CATL reportedly mulling HK listing to raise at least $5 billion

CATL is in talks with potential advisers and a listing in Hong Kong could take place as early as the first half of 2025, according to Bloomberg.

Contemporary Amperex Technology Co Ltd (CATL, SHE: 300750) is considering a second listing in Hong Kong that could raise at least $5 billion, making it the biggest listing in the city since early 2021, Bloomberg said in a report today, citing people familiar with the matter.

CATL, the world’s largest maker of electric vehicle (EV) batteries, was listed on the Shenzhen Stock Exchange on June 11, 2018, and has a current market capitalization of RMB 1.19 trillion ($163 billion).

The company is in talks with potential advisers, and a listing in Hong Kong could take place as early as the first half of 2025, according to Bloomberg.

CATL’s deliberations are still ongoing and plans could change, the report said, adding that a second listing is still subject to approval from China’s securities regulator.

CATL, based in Ningde, Fujian province in southeastern China, has seen its Shenzhen-traded shares rise about 70 percent this year.

In the third quarter of the year, the company reported revenue of RMB 92.28 billion, down 12.48 percent year-on-year but up 6.07 percent from the second quarter, according to financial results announced on October 18.

The company saw better cost control in the third quarter, with operating costs coming in at RMB 63.52 billion, down 22.34 percent year-on-year and down 0.48 percent from the second quarter.

CATL’s net income in the third quarter was RMB 13.14 billion, the second highest in its history and second only to the fourth quarter of 2022. This is up 25.97 percent year-on-year and 6.32 percent from the second quarter.

It achieved a record gross margin of 31.17 percent in the third quarter, the first time it exceeded 30 percent. This is an increase of 8.75 percentage points from the same period last year and up 4.53 percentage points from the second quarter.

The company is the world’s largest EV battery maker, with 252.8 GWh of power batteries installed in the January-October period, for a global share of 36.8 percent, according to South Korean market researcher SNE Research.

In China, CATL continued to rank first with a 42.71 percent share of 28.7 GWh of installed power batteries in November, according to China Automotive Battery Innovation Alliance (CABIA).

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