Contemporary Amperex Technology Co. Ltd. (CATL), a global leader in lithium-ion battery production, is reportedly considering a strategic move to list on the Hong Kong Stock Exchange as early as next year. According to International Financial Review (IFR), CATL is in the early stages of discussions with financial advisors, including CITIC Securities, CICC, Goldman Sachs, and UBS, who are expected to lead the transaction. This move comes as CATL seeks to expand its financial avenues and maintain its leading position in the rapidly growing global battery market.
The decision to consider a Hong Kong listing reflects CATL's strategic response to the current regulatory environment and market conditions. A listing in Hong Kong would allow the company to access funds from overseas markets amid China's strict control over domestic IPOs and subsequent issuances. This could provide CATL with the necessary financial support for its significant overseas production capacity, including two battery factories in Germany and Hungary, with the Hungarian factory's investment exceeding 50 billion yuan.
CATL's potential listing in Hong Kong follows the footsteps of its main competitor, Svolt Energy Technology, which listed on the Hong Kong Stock Exchange last year, raising approximately 9 billion yuan. While the scale of fundraising for CATL's listing remains under discussion, the company's previously planned Global Depositary Receipts (GDRs) issuance in Switzerland, which was postponed, could serve as a reference. The GDR issuance aimed to raise about 5-6 billion U.S. dollars, but was reportedly suspended due to domestic regulatory concerns over the scale of CATL's fundraising.
Despite these challenges, CATL's global market share and financial performance remain robust. From January to August, the company held a global market share of 36.9%, ranking first worldwide. In the first three quarters, CATL's revenue increased by 40.1% year-on-year to 294.6 billion yuan, with a net profit of 31.1 billion yuan, surpassing last year's total. The company has also initiated a share buyback plan, planning to spend 2-3 billion yuan to repurchase shares for stock incentive plans or employee stock ownership plans.
As CATL explores the possibility of a Hong Kong listing, the company's moves in the capital market are set to have a significant impact on the entire industry. The success of this move will depend on various factors, including regulatory approval, market sentiment, and global economic conditions. However, CATL's ambition to maintain its leading position in the global lithium-ion battery industry is clear, and its potential listing in Hong Kong could serve as an important reference for decisions made by other companies in the industry.
