By Agencies
Chinese battery giant CATL is preparing for a Hong Kong listing aimed at raising approximately $5 billion. Sources familiar with the situation report that the company’s shares may be offered at a discount of less than 10% compared to its Shenzhen-listed stock.
According to two sources, the anticipated discount could be in the mid-single digits. CATL is currently engaging with potential investors ahead of launching the book building process next week, which could mark the largest new share sale in Hong Kong in four years.
Investors are advocating for a minimum 10% discount on the Hong Kong shares relative to the Shenzhen-traded stock, as noted by one source and a fourth individual. However, the final pricing has yet to be determined.
The company aims to secure cornerstone and anchor investors to subscribe to around half of the shares being offered.
Typically, Hong Kong shares trade at a discount compared to mainland stocks, with offshore listings providing cheaper prices as an incentive for investors.
For context, Midea Group set its Hong Kong shares at about a 20% discount during its $4 billion listing in September last year.
CATL’s upcoming listing is poised to be the largest in Hong Kong since Kuaishou Technology raised $6.2 billion in its initial public offering in 2021.
In previous regulatory filings, CATL indicated that part of the funds raised will be allocated for building a €7.3 billion ($8.28 billion) battery plant in Hungary.
