Tesla Supplier CATL Soars 12.5% In $4.6 Billion Hong Kong IPO

Shares of Chinese electric vehicle battery giant Contemporary Amperex Technology Co. Ltd. (CATL) jumped 12.5% in their Hong Kong trading debut Tuesday after raising $4.6 billion in the world’s largest listing this year.

What Happened: The Tesla Inc. TSLA supplier opened at HK$296 ($37.83) per share, significantly above its HK$263 ($33.61) subscription price, Reuters reported.

CATL’s institutional tranche was oversubscribed 15.2 times while retail investors oversubscribed by 151 times, demonstrating strong market confidence despite U.S.-China trade tensions.

“The Hong Kong stock listing means our wider integration into the global capital market and a new starting point for us to promote the global zero-carbon economy,” CATL Founder and Chairman Robin Zeng said at the listing ceremony.

Why It Matters: CATL, which commands a 38% global EV battery market share, plans to use the proceeds primarily for constructing a factory in Hungary to supply European automakers, including Bayerische Motoren Werke AG ADR BMWYY, Stellantis STLA, and Volkswagen VWAGY.

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The company’s first quarter 2025 net profit rose 32.9% year-on-year to 14 billion yuan ($1.91 billion), its fastest growth pace in nearly two years.

U.S. investors with offshore accounts participated despite CATL’s January inclusion on a U.S. Defense Department list of companies allegedly working with China’s military, a designation CATL is contesting as “false.”

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