Listed at HK$263, CATL shares reached HK$311.40 on their first day of trading, up 18.4% on the day. The deal raised $4.6bn for the company, a figure that could rise to $5.3bn if the over-allotment option is exercised in full. This would be the largest fundraising in Hong Kong since Kuaishou's IPO in 2021.

The offering was met with strong demand: the institutional tranche was oversubscribed to 15 times, and the retail tranche a staggering 151 times, according to documents filed by CATL. This listing brings the total funds raised in Hong Kong this year to $7.73bn, compared with just $1.05bn in the same period in 2024, according to LSEG data. Already listed in Shenzhen, CATL is thus continuing its internationalization, strengthening its presence in global capital markets.

A strong signal for Hong Kong's financial center

For local stockmarket authorities, this successful listing could revive Hong Kong's appeal, which has been lacking in recent quarters. Bonnie Chan, CEO of Hong Kong Exchanges and Clearing, welcomed this strong signal, saying that more than 40 companies listed in mainland China are now considering a secondary listing in Hong Kong.

Wang Shuguang of CICC, co-sponsor of the deal alongside JPMorgan, Bank of America, and China Securities International, sees this move as an encouraging sign for Chinese industrial companies looking to open up to international investors.

Most of the funds raised will be used to finance the construction of a factory in Hungary to supply batteries to European manufacturers such as BMW, Stellantis and Volkswagen.

Favorable political context and sector momentum

The success of this listing was also driven by a trade truce between China and the United States. A 90-day tariff truce was announced just as CATL's order book was being built up. This situation prompted some international institutional investors to participate in the deal at the last minute.

Despite the ban on US investors operating from the United States from subscribing to the offer, some of them circumvented the obstacle via offshore accounts. It is easy to believe that the dual listing was intended for Wall Street and that the blacklisting has somewhat changed the Chinese firm's plans.

The company placed more than 135 million shares in a highly coveted offering. Institutional investors rushed to snap up the shares, with demand exceeding the available supply by over 15x. Enthusiasm amongst retail investors was even more spectacular, with the retail tranche oversubscribed 151 times. The undisputed global leader in the sector, CATL currently holds 38% of the electric vehicle battery market, up from 36% last year according to SNE Research. For its founder Robin Zeng, this listing marks a turning point: "This is a starting point for our broader integration into global capital markets and for contributing to the global zero-carbon economy."