On May 16, CATL announced on the Hong Kong Stock Exchange that the offer price had been set at HK$263.00 per H share on May 15, 2025, and it is expected that H shares will start trading on the main board of the Stock Exchange at 9 a.m. (Hong Kong time) on May 20 (Tuesday).

It is worth mentioning that the subscription is particularly hot, not only with star cornerstone investors such as the Kuwait Investment Authority (KIA) and Hillhouse Capital, but also the public offering is also quite hot, with a financing subscription multiple of nearly 120 times.

CATL's IPO scale expanded

First of all, CATL's IPO scale has been further expanded! The original plan was to raise $4 billion, but now it has been raised to $4.6 billion, and the number of shares offered has increased to 135.6 million shares. If the over-allotment option is exercised, the total proceeds could be up to US$5.3 billion.

What does this mean? To put it simply, if it eventually reaches $5 billion, it will become one of the largest IPOs in Hong Kong stocks in recent years, and may even become the largest IPO in the world this year.

In addition to the IPO itself, CATL also announced a number of interesting financial instruments:

Monthly Options: will be launched on the same day as the launch. This means that investors can start buying and selling options contracts on the first day of listing.

Weekly Options Contract: Officially launched on June 2, 2025. This is good news for those who prefer short-term trading.

In addition, CATL will be included in the list of designated securities that can be short-sold immediately after its listing on the Hong Kong Stock Exchange. This means that investors can hedge their risk or look for short opportunities by selling short.

Another important news is that CATL, through its wholly-owned overseas subsidiary, Hong Kong Times New Energy Technology Co., Ltd., will participate in the investment in a company called Lochpine Green Fund I, LP's private equity investment fund. The fund focuses on upstream and downstream investments in the field of carbon neutrality, with a target size of US$1.5 billion.

Why choose the field of carbon neutrality? Because with the increasing global attention to environmental protection and sustainable development, carbon neutrality has become a very hot and potential investment direction. CATL's move will not only help promote the development of green energy, but also bring new growth points to the company.

The "blitzkrieg"-like preparatory process

CATL's speed of preparation for the Hong Kong IPO can be described as a "blitzkrieg":

11 February: Submit A1 application to HKEX;

March 25: Obtained the filing of overseas issuance from the China Securities Regulatory Commission;

May 20: Officially listed on the Hong Kong Stock Exchange.

The whole process took less than 100 days, and the efficiency is amazing! Even more surprising is the subscription data:

The public offering portion was oversubscribed by 120 times;

The subscription amount exceeded HK$280 billion;

This makes it ranked third in the list of new shares frozen in Hong Kong stocks in the past six months, second only to Michelle Group and Bruke. This shows that the market's enthusiasm for CATL is very high, and investors are rushing to buy it.

CATL's cornerstone investor list can be called "all-star":

Sinopec

Kuwait Investment Authority (KIA)

Hillhouse Capital

Oaktree Capital

UBS Asset Management

These big-name institutions subscribed a total of HK$20.371 billion, accounting for more than 40% of the total funds raised. With so many heavyweight supporters, it can be seen how attractive CATL is.

CATL's final pricing was HK$263 per share, reaching the upper end of the offer price range. Compared with the closing price of A-shares of HK$295.36 on May 15, there is only a discount of about 5%. This pricing not only shows the strong demand in the market, but also reflects the company's confidence in future development.

Although the new energy vehicle industry is experiencing a fierce price war and the price of lithium batteries is also at a low level, CATL still maintains a good financial performance. This is also one of the important reasons for supporting this capital carnival.

In addition, CATL has accumulated cash dividends of nearly 60 billion yuan since its listing, and will increase the dividend ratio to 50% for two consecutive years in 2023 and 2024. Not only that, the company has also launched a share repurchase program of up to 8 billion yuan, further strengthening the attractiveness of shareholder returns.

Ninety percent of the funds raised will be used for projects in Hungary

According to the official announcement, 90% of the funds raised by CATL's Hong Kong IPO will be used for the construction of the first and second phases of the Hungarian project. The project is located in the city of Debrecen, Hungary, with a total investment of approximately 4.9 billion euros in the first and second phases. By the end of last year, CATL had invested 700 million euros.

Why did you choose to build a factory in Hungary? This is no accident, but a well-thought-out strategic layout:

Strong demand in the European market: Europe is the world's second largest market for new energy vehicles, but the local power battery production capacity is seriously insufficient. CATL has built a factory here to better meet market demand.

Circumvention of trade barriers: The European Union is about to implement the New Battery Law, which imposes more restrictions on imported batteries. The construction of a factory in Hungary can help CATL circumvent these trade barriers, while reducing transportation costs and improving supply stability to European automakers.

Obvious location advantages: Hungary is located in the hinterland of Europe and has the geographical advantage of radiating the Central and Eastern European markets. This means that CATL can not only better serve customers in Western Europe, but also expand into the Eastern European market and start a new round of competition with competitors such as LG Energy Solution and Samsung SDI.

According to the financial report, by the end of 2024, CATL's euro balance was only 1.616 billion euros, a decrease of 58% compared with the middle of last year. This shows that the company's funding needs for overseas projects are very strong, and explains why CATL chose to conduct its IPO in Hong Kong, as it is an international fundraising platform that can better support its overseas expansion plans.

Jingtai briefly summarizes the main highlights of CATL's IPO:

The use of funds is clear: 90% of the funds raised in the IPO will be used for the construction and expansion of the project in Hungary. Strategic layout: By building a factory in Hungary, CATL can not only better serve the European market, but also avoid trade barriers and reduce transportation costs.

Urgent financial needs: The company's euro balance has decreased significantly, highlighting the strong need for funding for overseas projects. Assisted by an international platform: Through its listing on the Hong Kong Stock Exchange, CATL has received more international capital support and further strengthened its global market position.

For investors, this means that CATL not only has strong market support, but also a clear development strategy and sufficient resources. Despite the fierce competition in the market, the company's future prospects are still worth looking forward to.