CATL set to price Hong Kong IPO at top end of range as retail investors pile in
World’s largest maker of electric-vehicle batteries could expand its IPO deal to as much as US$5.3 billion if several upsize options are exercised
Contemporary Amperex Technology (CATL) is expected to price its initial public offering (IPO) in Hong Kong at the top end of a range and increase the offer size to raise about HK$35.7 billion (US$4.6 billion), defying naysayers about its ability to raise capital amid a tariff war and uncertainties.
The world’s largest maker of electric-vehicle batteries planned to sell 117.9 million new shares at HK$263 a share under its base offering, according to a person familiar with the matter. The firm was expected to top up the deal by 15 per cent, or 17.7 million shares, to meet investor demand, the person added.
The offer price was 7.6 per cent below the stock’s closing of 262.60 yuan (HK$284.48) in Shenzhen on Wednesday, which is small relative to Midea Group’s pricing at a 20 per cent discount during its IPO last year.
The IPO attracted strong demand with the order books “multiple times” oversubscribed across a broad spectrum of investors, including sovereign wealth funds and global long-only asset managers, said the person, who declined to be named because the information is private.
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Retail investors in Hong Kong rushed to bid for the shares as they borrowed more than HK$210 billion in margin financing from local brokerages, or 90 times their 7.5 per cent IPO share allocation, according to data compiled by Futu Securities. The subscription was expected to close at noon local time on Thursday.