Key Takeaways
Contemporary Amperex Technology Co. Limited (CATL) raised approximately $5 billion in a placement of new Hong Kong-listed shares, bolstering its finances as it accelerates a global expansion.
"CATL is catching a perfect wave," Winston Ma, executive director of the Global Public Investment Funds Forum, said in comments to Reuters, noting the strong alignment of a rebounding Hong Kong market and high oil prices driving green-energy demand.
The world's largest electric-vehicle battery manufacturer sold 62.385 million new H-shares at HK$628.20 each, according to a company filing on April 30. The deal raised net proceeds of HK$39.123 billion. The placing price represented a discount of roughly 7 percent to the previous day's closing price. Shares fell nearly 7 percent after the announcement as investors absorbed the dilution.
The capital injection provides a significant war chest for the battery giant, which holds a 38.1 percent share of the global EV battery market, according to SNE Research data. Proceeds are earmarked for expanding overseas production, a move seen as a hedge against U.S. tariffs on Chinese-made batteries, which are set to increase from 7.5 percent to 25 percent in 2026. The company's first-quarter net profit climbed 49 percent year-over-year to 20.7 billion yuan ($2.8 billion).
The deal has direct implications for major automakers and the energy storage sector. Tesla, a key CATL customer, has pre-committed to sourcing at least 20 GWh of cells for its Megapack stationary storage business from 2026 through 2028. The increased capacity and financial firepower at CATL provide more runway for Tesla's fastest-growing division, as well as for other customers like BMW, Volkswagen, and Nio.
The pricing gives the company fresh capital to expand production at a time when its factories are running at 85 to 90 percent utilization. First-day trading of the new shares will test institutional appetite for the sector after the significant dilution.
This article is for informational purposes only and does not constitute investment advice.
