CATL’s US$5.3 billion Hong Kong IPO defies gloom with city’s biggest stock sale since 2021
Listing is expected to be the largest in Hong Kong since Kuaishou Technology raised US$6.2 billion in January 2021
The company started taking investor orders for a base of 117.9 million shares at a maximum offer price of HK$263, according to a stock exchange filing on Monday. About 7.5 per cent of the shares is reserved for local retail investors, while the remaining is for global investors.
CATL can upsize the deal by an additional 38 million shares, to meet investor demand. The stock is scheduled to begin trading on the Hong Kong stock exchange on May 20, according to its listing timetable.
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 spur interest.
05:04
US, China agree to ‘trade consultation mechanism’, conduct further talks, He Lifeng says
CATL’s shares rose 3.5 per cent to 257 yuan (US$35.64) in Shenzhen on Monday. In Hong Kong on Monday, the Hang Seng Index closed 3 per cent higher after China and the US agreed to substantially lower tariffs on each other’s goods.