Chinese power battery giant CATL has officially filed for a secondary listing in Hong Kong, marking a significant step in its global expansion strategy. The filing, which includes the first version of its prospectus, is set to position CATL as one of the largest initial public offerings (IPOs) in Hong Kong in recent years. The listing, expected to raise at least $5 billion, would be the largest IPO in the city in four years, according to Reuters.
The application comes with sponsorship from major financial institutions, including BofA Securities, CICC, China Securities International, JP Morgan, Goldman Sachs, Morgan Stanley, and UBS. CATL’s prospectus highlights the company’s global operations, which include six research and development centers and 13 manufacturing bases across 64 countries and regions.
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As of November 2024, about 17 million vehicles worldwide are powered by CATL batteries, contributing to its status as the world’s number one supplier of power batteries for eight consecutive years. In the energy storage battery market, CATL has held the top spot for three years.
CATL’s dominance in the global power battery sector continues to grow. According to recent data from South Korean market research firm SNE Research, the company’s installed electric vehicle (EV) battery volume reached 339.3 GWh in 2024, up 31.7 percent from the previous year. This growth solidified CATL’s leading market share of 37.9 percent in the EV battery sector, with BYD trailing at 17.2 percent.
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The company’s batteries now power 72 percent of China’s high-end new energy vehicles (NEVs) and 80 percent of new energy buses. With an annualized production capacity of 646 GWh in 2024, CATL remains the largest battery supplier worldwide.
Despite this growth, CATL has experienced challenges in its financial performance. It recently reported an expected net income for 2024 between RMB 49 billion and RMB 53 billion, marking an increase from 2023. However, the company’s revenue is expected to decline by up to 11.2 percent due to lower product prices caused by a decrease in the cost of raw materials such as lithium carbonate.
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CATL’s listing in Hong Kong is part of a broader effort to bolster its global presence and provide a platform for further international capital operations. As the company continues to expand, the Hong Kong IPO could serve as a key element in its long-term strategy to maintain leadership in the global power battery and energy storage sectors.