Shares in Chinese battery giant CATL close up 16 pct on Hong Kong debut

China

Shares in Chinese battery giant CATL close up 16 pct on Hong Kong debut

2025-05-20 21:19 Last Updated At：05-21 01:27

Shares in Chinese electric vehicle (EV) battery maker Contemporary Amperex Technology (CATL) closed up 16 percent after they debuted at the Hong Kong Stock Exchange (HKEX) on Tuesday, raising 4.6 billion U.S. dollars in the world's biggest initial public offering (IPO) this year.

On its listing day, CATL opened at 296 Hong Kong dollars, rising 12.55 percent from its offering price of 263 Hong Kong dollars. The stock closed at 306.20 Hong Kong dollars a share.

CATL's Hong Kong IPO attracted a diverse range of investors from 15 countries and regions, including sovereign wealth funds, industrial investors, and long-term institutional investors. The listing process was completed in just 128 days.

"As a global company, we need a global capital market platform. Overseas capital markets offer higher efficiency, and we need this as we expand our production capacity globally. A fast and effective capital market is crucial for us," said Wang Hongbo, CATL's Chief Investment Officer.

"As we are a leading company in this industry, global investors want to share in our growth opportunities. This also reflects the positive re-evaluation of Chinese technology companies," Wang added.

At the end of 2024, CATL operated six global research and development centers and 13 battery production bases, with service networks spanning 64 countries and regions.

The company's profitability has grown consistently, with profits reaching 33.5 billion yuan (about 4.64 billion U.S. dollars), 47.3 billion yuan (about 6.56 billion U.S. dollars), and 55.3 billion yuan (about 7.67 billion U.S. dollars) in 2022, 2023, and 2024, respectively.

CATL set a record for the lowest discount rate for A-share companies issuing H-share IPOs in the past decade. Expert said that this fully reflects the optimism among international investors about China's new energy sector.

"Several A-share companies in the new energy industry chain have applied for H-share listings, and we expect more new energy companies to issue shares in Hong Kong. These projects are likely to continue attracting strong interest from both domestic and international institutional investors," said Cong Hui, head of capital markets department of China International Capital Corporation (CICC).

S Africa declares national disaster as flooding batters northern region

South Africa's National Disaster Management Centre declared a national disaster on Sunday as heavy rains and flooding continued to batter northern parts of the country.

According to local media reports, continuous rainfall since late December has caused severe flooding in Limpopo Province, where at least 17 people, including two children, have died. Minister of Cooperative Governance and Traditional Affairs Velenkosini Hlabisa said in a statement on Sunday that 20 people had been killed in flood-related incidents in Mpumalanga Province.

More than 1,600 homes and 31 schools have been affected in Limpopo, while over 1,000 homes in Mpumalanga have suffered varying degrees of damage. The flooding has also forced the partial closure of Kruger National Park, one of Africa's largest wildlife reserves, with more than 600 visitors evacuated after rising waters inundated access roads and campsites.

The South African National Defence Force has deployed two helicopters to assist with rescue operations and evacuate residents stranded in hard-hit areas.