On May 7, 2025, the CATL logo appears on a smartphone screen with the Hong Kong Stock Exchange (HKEX) logo in the background in Chongqing, China.
Li Hongbo | Visual China Group | Getty Images
Shares in China’s Hyundai Amperex Technology fell 6.81% on Tuesday after the EV battery giant announced plans to issue about $5 billion in shares in Hong Kong.
CATL, which manufactures lithium-ion batteries for electric vehicles, aims to raise HK$39.2 billion (approximately $5 billion) through a third-party allotment of capital in order to accelerate investment in renewable energy businesses against the backdrop of the global oil crisis.
The last traded price of CATL shares was HK$627.5 and the issue price was HK$628.20.
Net profits after fees are expected to total approximately HK$39.1 billion, with the funds to be used for global new energy projects, research and development, and general corporate purposes.
The company said the funding will help it expand into overseas markets, expand production capacity and strengthen its zero-carbon strategy.
CATL said demand for power and energy storage batteries remains strong as electrification accelerates globally, and this funding will help strengthen its leadership in the fast-growing sector.
The company listed in Hong Kong in May last year after a blockbuster IPO that raised more than $5 billion, with most of the proceeds earmarked for overseas projects, including a factory in Hungary. The company is also listed in Shenzhen, mainland China.
HSBC said in a note last Friday that strong earnings momentum remains at the core of its CATL investment case, after the CATL maker recently posted first-quarter net profit of 20.7 billion yuan ($2.8 billion), up about 49% year-on-year.
The bank expects the momentum to continue into the second quarter due to a solid production pipeline and high capacity utilization, with CATL likely to maintain production levels of approximately 85% to 90%. Continuous production capacity expansion is also seen as a key driver of market share expansion.
HSBC said broader macro and industry trends were strengthening demand, with oil price fluctuations accelerating the transition to electrification and driving the adoption of EVs and energy storage systems. The rapid growth of AI data centers will further increase the demand for battery storage solutions, potentially steepening the medium-term growth trajectory.
The bank maintains a buy rating on CATL’s mainland stock and Hong Kong-listed stock, but raised its price targets to 547 yuan and HK$790, respectively, reflecting higher earnings expectations due to stronger volume assumptions.
