The Shenzhen-listed company started taking investor orders for a base of 117.9 million shares at a maximum offer price of HK$263. The firm can upsize the deal by exercising a size adjustment or “greenshoe” option to sell up to 38 million additional shares combined. The stock is scheduled to begin trading in Hong Kong next Tuesday.
The top offer price was 1.5 per cent lower than Friday’s close in Shenzhen. The discount is significantly less than previous major deals in Hong Kong such as Chinese home appliance maker Midea’s US$4 billion first-time share sale last year, which saw a discount of around 20 per cent. Investors are usually offered stock at a discount in offshore listings to lure them to buy.
CATL’s deal attracted cornerstone investors who agreed to commit about US$2.6 billion worth of the offer shares, according to the prospectus. These investors include Chinese state-owned oil company Sinopec, sovereign wealth fund the Kuwait Investment Authority and alternative-asset manager Hillhouse Investment.
The deal is expected to be the largest new share sale in Hong Kong since Kuaishou Technology raised US$6.2 billion from its initial public offering (IPO) in January 2021. CATL’s offering came despite market uncertainty amid back-and-forth tariffs between the US and China.
The proceeds from the listing will mostly go towards developing CATL’s Hungary plant, as well as for working capital and other general corporate purposes.
