CATL’s 12.5% debut in the year’s biggest IPO boosts Hong Kong to No 2 in global ranks

The world’s largest initial public offering (IPO) this year got off to a sizzling start as the shares of Contemporary Amperex Technology (CATL) began trading with a premium to their offer price.

Trading under the stock code 3750, CATL shares first changed hands on Tuesday at HK$296 in Hong Kong, a premium of 12.5 per cent compared with their offer price of HK$263, in a stock offering that raised HK$35.7 billion (US$4.6 billion). In Shenzhen, CATL’s shares fell 0.6 per cent to 258.58 yuan (HK$280.57).

The gain suggests strong but unfulfilled demand for the shares of the world’s largest maker of batteries for electric vehicles, which aims to increase its 38 per cent control of the global EV battery market. Retail investors in Hong Kong borrowed more than HK$282 billion in margin financing from brokerages to bid for CATL, or 105 times the value of shares allocated to them in the offering, according to data compiled by Futu Securities.

“This listing signifies our deeper integration into the global capital markets and marks a new milestone in our mission to drive the global zero-carbon economy,” CATL’s founder Robin Zeng said at the listing ceremony of the company’s shares at the Hong Kong stock exchange. “CATL is not just a battery component manufacturer; we are a system solution provider and are committed to becoming a zero-carbon technology company.”

The Hang Seng Index advanced by 0.5 per cent, while the CSI 300 Index that tracks the 300 largest companies in Shanghai and Shenzhen rose by 0.3 per cent.

“The outstanding performance of Hong Kong’s stocks and the strength of the currency have boosted the market,” Financial Secretary Paul Chan Mo-po said. “The listing of CATL will make these positive factors more prominent. I believe it will improve the liquidity of Hong Kong stocks and promote the optimisation of the market structure.”