CATL shares slide after $5 billion Hong Kong share placement plan
A CATL logo is displayed on a smartphone screen with the Hong Kong Stock Exchange (HKEX) logo in the background on May 7, 2025 in Chongqing, China.
Li Hongbo | Visual China Group | Getty Images
Shares of China’s Contemporary Amperex Technology fell 8.5% on Tuesday after the electric vehicle battery giant Announces plans for nearly $5 billion equity offering in Hong Kong.
CATL, which produces lithium-ion batteries for electric vehicles, aims to raise 39.2 billion Hong Kong dollars (about $5 billion) through a private placement while accelerating its investments in the renewable energy business amid the global oil crisis.
CATL shares were last traded at HK$618, compared to the placement price of HK$628.20.
Net revenue is expected to total approximately HK$39.1 billion, excluding fees, with funds allocated for global new energy projects, research and development and general corporate purposes.
The company said the funds will support expansion into overseas markets, expand production capacity and strengthen its zero-carbon strategy.
CATL said demand for power and energy storage batteries remains strong as electrification accelerates globally and the funds will help strengthen its leadership in the fast-growing sector.
The company was listed in Hong Kong in May last year following a major IPO that raised more than $5 billion, with the bulk of the proceeds earmarked for overseas projects including: A factory in Hungary. The company is also listed in Shenzhen, mainland China.
Strong earnings momentum remains at the center of the battery maker’s CATL investment case, HSBC said in a note last Friday. recently announced its first quarter net profit It reached 20.7 billion yuan ($2.8 billion), an increase of approximately 49% compared to the previous year.
The bank expects the momentum to carry over into the second quarter, citing robust production pipelines and high utilization rates, with CATL likely to maintain production levels around 85% to 90%. Continued capacity expansion is also seen as a key driver of market share gains.
HSBC said wider macro and industry trends were strengthening demand, with volatile oil prices accelerating the shift to electrification and increasing the adoption of EV and energy storage systems. Rapid growth in AI data centers could further increase demand for battery storage solutions and potentially steepen the medium-term growth trajectory.
The bank maintained its buy ratings on both CATL’s mainland- and Hong Kong-listed shares, while raising its price targets to 547 yuan and HK$790 respectively; This reflects higher earnings estimates driven by stronger volume assumptions.
