According to Wechat Official Account @qd-Lib, on May 6, 2025, CATL (Contemporary Amperex Technology Co. Limited) released an announcement stating that it had passed the Hong Kong Stock Exchange (HKEX) listing hearing. The HKEX also issued a related announcement, anticipating the IPO to take place soon with a fundraising scale of US$5 billion, making it the largest IPO since Kuaishou's US$6.2 billion fundraising in 2021.
Reviewing CATL's Hong Kong listing process, one word comes to mind: "fast."
It officially released the announcement in December 2024; submitted the listing application in February this year; received the notification letter from the China Securities Regulatory Commission on March 25th; and the HKEX held a listing hearing to begin review on April 10th. Calculating from the official announcement of the listing to the hearing, it took less than half a year. CATL's strong appeal has allowed it to smoothly achieve the A+H model. Listing in Hong Kong can meet the needs of its global capacity layout, purify its capital structure, and consolidate its leading position in the battery industry.
Perhaps what can be solved first is the smooth construction of CATL's Indonesia project. News today suggests that CATL is seeking a loan of approximately US$1 billion to invest in this project. Given the current listing speed and financial situation, this loan may be easily obtained.
From a Glimpse of the Listing to Future Planning
Once sitting on the throne of the industry leader, one must face countless eyes coveting that position, constantly preventing a fall.
The higher the position, the colder it gets. CATL is well aware of this.
From the current situation, companies such as BYD, Eve Energy, CALB, and SVOLT have all found their own suitable paths for expansion. Many terminal car companies also want to find more options besides CATL. Therefore, to maintain the top position, CATL needs faster actions, more precise strategic vision, and longer-term and deeper planning.
This is also why CATL refuted rumors of a Hong Kong listing in early 2024 but then "went back on its word" within a few months. To maintain the top position, it needs to adapt to market conditions and future trends, and a Hong Kong listing is precisely the most effective action to take in the capital market.
CATL has already reached the peak of the A-share market. The market fluctuations in the past two years and the competition from peers have caused some anxiety for the "Battery King," requiring it to set new goals and maintain a proactive vitality.
As things stand, the A+H model is a necessary step.
However, CATL's Hong Kong listing does not have the unspoken difficulties that other companies face when listing in Hong Kong, such as tightened A-share IPOs or a need for financing due to insufficient cash. CATL has ample cash on hand and no urgent need for financing.
However, achieving zero-carbon factories, lighthouse factories, and overseas layout truly requires strong capital reserves. Similarly, overseas operations require a large amount of foreign exchange, which is the fundamental reason for CATL's Hong Kong fundraising.
Currently, CATL has strategic partnerships with most domestic car companies and needs to find overseas car companies to expand its scale. Cooperation with highly internationalized companies such as Stellantis and Ford requires overseas capital, and a Hong Kong listing is more conducive to the participation of international investors.
Therefore, "seeing the leopard through the tube" of the Hong Kong listing reveals that CATL's grand strategy is based on a global chessboard, with each move considered from a global perspective. However, the path to overseas expansion will inevitably face strong winds and waves. Nevertheless, danger and opportunity coexist, and fortune and misfortune are interdependent. High profits require facing high risks.
A Surge of Wind and Clouds: A New Wave of Hong Kong Listings
CATL is just the crest of this listing wave. More new energy companies will follow suit and land on the Hong Kong Stock Exchange. In April alone, several companies, including Narada Power, CNGR Advanced Material, and Nationz Technologies, announced their plans for Hong Kong listings.
Despite the obstruction of global economic globalization by certain political forces, the new energy sector continues to adhere to overseas expansion and deepen its globalization strategy. Start Lithium predicts that this wave of Hong Kong listings will continue to expand, and the A+H lineup will rapidly grow this year.
The businesses of companies listed in Hong Kong will no longer be limited to the battery segment but will cover almost all new energy fields, including photovoltaics, energy storage, and terminal car companies.
Start Lithium summarizes the following characteristics of this wave of Hong Kong-listed companies:
Firstly, they are large in scale, with many leading enterprises. CATL is the leader in the battery segment, and other leading companies listing in Hong Kong include JA Solar (photovoltaic leader), Junda Solar (solar cell leader), Lead Intelligent Equipment (equipment leader), and GEM Co., Ltd. (battery recycling leader), forming an "all-star" lineup.
Secondly, a large number of A-share listed companies are achieving a dual-listing model. BYD, Lopal Tech, Ganfeng Lithium, and Tianqi Lithium have already achieved this.
Finally, some companies that encountered obstacles in their A-share IPOs or whose performance changed due to long-term IPO queues and could not successfully list on the A-share market have turned to Hong Kong listing. The prospects of these companies will not fundamentally change due to the change of stock exchange. Some companies have experienced significant performance declines, and stabilizing their financial reports for the current year is their primary task.
At the same time, it can be observed that many companies going public in Hong Kong have the need to supplement their working capital. Start Lithium believes that if the goal of listing is to supplement funds, it will lead to endless troubles once the listing is completed.
Indeed, low thresholds and quick approvals are the advantages of Hong Kong stocks, but the international capital market has stricter requirements for companies, with strict regulations on environmental protection, financial transparency, and other information. A+H listing requires meeting the regulatory requirements of both places simultaneously. Low valuations, profitability, international competitiveness, and other hard indicators will overwhelm those companies whose primary goal is financing.
Therefore, a Hong Kong listing is an effective way for strong companies to strengthen themselves and is by no means a way for poorly performing companies to save themselves. A+H listing is even more of a challenge to a company's strategic planning. The global vision and corporate responsibility required for a Hong Kong listing are significant, and non-leading companies are advised to proceed with caution.
Source：https://mp.weixin.qq.com/s/5r_NtWkowbBGZmWEnM2MkA
