HONG KONG (AP) 鈥 Shares in CATL, the world鈥檚 largest maker of batteries for electric vehicles, jumped about 13% Tuesday in its Hong Kong trading debut after it raised about $4.6 billion in the world鈥檚 largest initial public offering this year.
The solid reception for Chinese company, Contemporary Amperex Technology Co., in Hong Kong suggests there is still an appetite among international investors for leading Chinese manufacturers despite trade tensions between Beijing and Washington.
It sold more than 135 million shares at their maximum offer price, 263 Hong Kong dollars ($33.6) each. Its shares rose after they started trading at 296 Hong Kong dollars ($37.80), 12.5% higher than their offer price. They were up about 13% by midday.
CATL also has shares listed in Shenzhen, a business hub neighboring Hong Kong. They initially fell but then edged 0.1% higher on Tuesday.
CATL held a nearly 38% global market share for EV batteries in 2024, its listing documents showed. It supplies automakers like Tesla, Volkswagen, BMW, Mercedes-Benz, Ford, Toyota and Honda.
The company has faced pressure from the U.S. In January, the U.S. Defense Department added it to a list of companies it says have ties to China鈥檚 military, . It called the inclusion a 鈥渕istake.鈥
In April, John Moolenaar, chairperson of the U.S. House Select Committee on China, wrote to the CEOs of JPMorgan Chase & Co. and Bank of America to demand that the two American banks withdraw from their work on CATL's IPO. But the two banks stayed on.
In the U.S., Ford Motor Co. is licensing technology from CATL to build batteries, but the plan faces resistance from some Republican lawmakers, who have that the Chinese company could benefit from U.S. tax dollars.
The share offering excluded onshore U.S. investors, though many large U.S. institutional investors have offshore accounts that allow them to participate.
The company said it plans to use most of the net proceeds from the IPO to build its factory in Hungary, meant to bring it closer to the manufacturing facilities of its main European customers.
CATL recorded a profit of 55.3 yuan ($7.6 billion) in 2024, up 16.8% from 2023. Its listing surpassed JX Advanced Metals鈥 $2.9 billion IPO in Japan in March, which was previously the largest this year, according to Renaissance Capital, a provider of pre-IPO research and IPO-focused ETFs.
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Associated Press writers Damian Troise in New York and Didi Tang in Washington contributed to this report.
