Shares in Chinese battery giant CATL soared more than 18 percent on its Hong Kong debut on Tuesday after raising HK$35 billion in the world's biggest initial public offering this year.

Shares of CATL soared to a high of HK$311.40 in morning trades, up 18.4 percent from its final and maximum listing price of HK$263, while its shares listed in Shenzhen rose to around 265 yuan, after falling at the opening.

The company is already listed in Shenzhen, and its plan for a secondary listing in Hong Kong was announced in a December filing with the stock exchange.

"The performance was even better than my expectation," Alex Wong, director of Alex KY Wong Asset Management, told RTHK.

"This IPO is hot, but it's priced at a very similar level to its A-share, so it's quite pricey in the traditional sense."

Hong Kong shares typically trade at a 25 percent discount to their mainland siblings, according to the Hang Seng Stock Connect China AH Premium Index, but CATL priced its Hong Kong stock at HK$263 apiece, a smaller discount to its Shenzhen-traded sister.

"[In the past] for many retail investors in Hong Kong, they cannot access CATL due to certain restrictions," Wong said.

"That's why [the listing this time] makes it more appealing to retail investors and we are seeing a premium in H-shares right now.

"Also, I think people are also optimistic because they are listed in Hong Kong to get more foreign currencies to try to expand overseas."

For Christopher Lee, a senior partner at Farron, Augustine & Alexander Investments, CATL's debut "is very exciting, and it's also an indication of the strength of local demand."

He added: "People have had very positive comments about how short the duration it takes for its batteries to be fully charged."

The Ningde, Fujian-based electric vehicle battery giant had US$50 billion in sales last year and a net income of US$7 billion, as it eyes further expansion globally.

A global leader in the sector, CATL produces more than a third of all electric vehicle batteries sold worldwide.

It has signalled that funds raised from its Hong Kong IPO will be used to support its European expansion, namely in Hungary.

The firm is also one of the latest firms to go ahead with a share sale after US President Donald Trump rolled out a tariff war globally. CATL has said that it expects “little impact” from the risk of US tariffs.

Both Wong and Lee noted that the success of the stock offering by CATL, which might increase to HK$41 billion if the firm exercises an option to do so, could embolden other mainland firms to go public.

"Clearly, Hong Kong is an international capital market, so it opens up opportunities for many non-Chinese investors, especially non renminbi investors, to participate," Lee said.

"On the tariff side, if you are referring to US tariffs, CATL has a limited market share in the US market, so I don't think the tariffs will have any material impact."
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Last updated: 2025-05-20 HKT 13:36