The long-awaited filing by CATL, as the world’s top electric-vehicle battery maker is known, comes amid a rally in Hong Kong’s stock market. The company could raise more than $5 billion. That would be the largest since Kuaishou Technology’s $6.2 billion listing in early 2021.

CATL is expected to drive much of this year’s share-sale recovery in Hong Kong, with other mainland China-listed companies also seeking a second float in the city. The chief executive officer of Hong Kong Exchanges & Clearing Ltd. last month said about 100 companies were in the initial public offering pipeline.

Hong Kong’s IPO proceeds nearly doubled in 2024 to about $10 billion, but that’s still below the annual average of about $30 billion for the 10 years preceding the pandemic.

CATL has appointed Bank of America Corp., China International Capital Corp., CSC Financial Co. and JPMorgan Chase & Co. as joint sponsors for the listing, according to the company’s filing to the Hong Kong stock exchange on Tuesday. Goldman Sachs Group Inc., Morgan Stanley and UBS Group AG are also among the arrangers for the share sale.

The Ningde, Fujian-based EV battery giant said the funds raised will be used to fund its European expansion, namely in Hungary. Of the 4.9 billion euro ($5.1 billion) needed for the 100 gigawatt-hours factory, CATL said in its prospectus it has spent 700 million euro so far, with the secondary listing raising the rest of the funds.

Source: FORTUNE