Shares of CATL Surge Over 16% in Hong Kong Debut After Largest Global IPO of 2025
— F.M.I.E. Sources
Key Highlights:
- Contemporary Amperex Technology Co. Ltd. (CATL), the world’s largest battery producer, saw its shares jump over 16% during its Hong Kong trading debut on Tuesday, F.M.I.E. sources confirmed.
- The company raised HK$35.7 billion (approximately $4.6 billion) in its initial public offering, making it the largest global listing of 2025 to date.
CATL shares closed at HK$306.2, well above the IPO price of HK$263. Meanwhile, the company’s A-shares on the Shenzhen stock exchange reversed earlier losses to finish up 1.15% at 263 yuan.
According to F.M.I.E. sources, CATL plans to allocate 90% of the IPO proceeds toward the construction of its new manufacturing facility in Hungary. This plant will serve key European automotive clients including Stellantis, BMW, and Volkswagen.
“Europe is a major focus for CATL as it faces saturation in the Chinese market,” said Neil Beveridge, a senior research analyst at Bernstein, speaking to F.M.I.E. “With European EV market penetration still around 20-25%, the growth opportunity there is significant.”
CATL’s move into Europe aligns with expansion efforts by leading Chinese EV firms such as BYD. However, this growth comes amid heightened scrutiny from Western governments. Last year, the U.S. and EU imposed tariffs on Chinese-made EVs over allegations of unfair trade practices.
Earlier in 2025, the U.S. Department of Defense placed CATL on a watchlist over alleged ties to China’s military—allegations the company has denied. Bill Russo, CEO of Automobility, told F.M.I.E. that while such political pressure may complicate CATL’s U.S. prospects, its global strategy remains resilient as long as multilateral sanctions don’t materialize.
Despite fierce domestic competition, CATL reported a 15% year-on-year net profit increase in 2024, even as annual revenue declined by 9.7%. China’s EV sales surged by 40% to 11 million units in 2024, buoyed by government subsidies and purchase incentives, according to U.K.-based Rho Motion.
Brendan Ahern, Chief Investment Officer at KraneShares, told F.M.I.E.: “CATL is a cornerstone in the global EV space. Along with BYD, it’s a must-own for serious investors in the sector.”
The Hong Kong listing was jointly managed by Bank of America, China International Capital Corporation, Goldman Sachs, Morgan Stanley, and JPMorgan Chase.
Commenting on the broader market impact, Hong Kong’s Financial Secretary Paul Chan noted in a recent blog post that CATL’s IPO pushed total new stock fundraising in Hong Kong to over HK$60 billion this year—more than six times the volume from the same period in 2024.
Andy Maynard, Head of Equities at China Renaissance, echoed this sentiment, saying to F.M.I.E., “Despite geopolitical tensions, CATL’s IPO shows global investors are still looking to China for quality growth plays.”