CATL, world’s largest EV battery maker, surges 16% on $4.6B Hong Kong debut, biggest IPO of 2025

CATL shares jumped 16% in their first day of trading on the Hong Kong stock exchange after the Chinese EV battery giant raised $4.6 billion in what’s now the biggest listing of 2025.

The stock closed at HK$306.20, up from its IPO price of HK$263, outpacing the 1.5% gain in the broader Hang Seng index. At one point, shares hit as high as HK$311.40. It was the second most actively traded stock by turnover, with over 27 million shares — worth HK$8.28 billion — changing hands.

This was more than just a big day for CATL. The strong domestic and international demand suggests renewed confidence in Chinese equity listings, even with market volatility and ongoing trade tensions in the background.

“The company, which is also listed in Shenzhen, was the second most actively traded stock by turnover in Hong Kong, with 27.69 million shares worth HK$8.28 billion changing hands on its first day of trading,” Reuters reported.

CATL had originally aimed to raise $4 billion, but increased the size of the offering after it was swamped with investor interest. If the “green shoe” option is exercised, the total could climb to $5.3 billion, putting it just behind Kuaishou’s $6.2 billion IPO in 2021.

The institutional portion of the deal was oversubscribed by more than 15x, while retail demand went through the roof — 151x oversubscribed.

That kind of momentum is rare in Hong Kong these days. The city has seen only $7.73 billion raised via IPOs and second listings so far this year, a massive jump from $1.05 billion at this point last year, according to LSEG data.

Global investors didn’t seem fazed by CATL’s inclusion on a U.S. Department of Defense list in January, which accused the company of ties to the Chinese military. In its prospectus, CATL said it was “working with the U.S. department to address the false designation.”

Amid U.S. Blacklisting, CATL Raises Billions and Rockets 16% in Hong Kong Debut

That didn’t stop investors, including those from the U.S., from placing bids far above the amount of stock available. Some U.S. investors even used offshore accounts to participate. CATL restricted direct U.S. onshore access to its offering, but interest was still strong.

The IPO comes at a pivotal moment. On the day CATL kicked off its bookbuilding process — May 12 — the U.S. and China announced a 90-day truce in their ongoing trade dispute. That news brought in additional institutional demand, with long-only funds joining in after initially staying out.

Robin Zeng, CATL’s founder and chairman, called the listing “a new starting point for us to promote the global zero-carbon economy” during the ceremony in Hong Kong.

CATL plans to use much of the money to build a new battery plant in Hungary, where it already works with major automakers like BMW, Stellantis, and Volkswagen. It’s part of a broader push to increase production outside China and serve global EV demand more directly.

Hong Kong exchange CEO Bonnie Chan said more than 40 mainland-listed companies are exploring IPOs in the city. One big draw, she noted, is that a Hong Kong listing gives Chinese firms access to offshore capital, key for those with global growth plans.

CICC, one of China’s biggest investment banks, helped lead the deal along with JPMorgan, Bank of America, and China Securities International. Wang Shuguang, who oversees investment banking at CICC, said the deal could help “revive Hong Kong’s capital markets.”

As Northvolt Collapses, CATL Surges in $4.6B IPO, China Tightens Grip on EV Battery Market

CATL’s market dominance is no small factor in the deal’s success. According to SNE Research, the company captured nearly 38% of the global EV battery market in 2024, widening the gap with its nearest rivals.

While CATL is gaining momentum with strong international demand and expanding its footprint in Europe, the contrast couldn’t be sharper across the continent. Northvolt, once touted as Europe’s answer to China’s EV battery supremacy, filed for bankruptcy after burning through a staggering $10 billion in funding.

The timing is hard to ignore. CATL is not just growing — it’s cementing its lead at a time when Western rivals are falling apart. For many investors, this IPO wasn’t just about getting in on a high-growth stock — it was a vote of confidence in China’s dominance of the global battery supply chain.

Contemporary Amperex Technology Co., Limited (CATL) holds the top spot in the global EV battery market, commanding a 37.9% share in 2024 — more than double that of its closest rival, BYD, which stood at 17.2%.

Its lead isn’t just about scale. CATL has built deep relationships with global automakers like Tesla, BMW, Volkswagen, and Ford, while pouring billions into overseas production. A key piece of that strategy is a $7.3 billion battery plant under construction in Hungary, aimed at supplying Europe’s biggest car brands.

Despite being flagged by the U.S. Department of Defense earlier this year, the company hasn’t struggled to attract capital. Its recent $4.6 billion listing in Hong Kong — the biggest IPO of 2025 so far — shows that global investors still view CATL as a dominant force in the EV transition.

Meanwhile, the listing didn’t just mark a fundraising win. It’s a signal that, for now, international investors are still betting big on China’s EV future — even with geopolitical risk in the background.