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(Bloomberg) -- Contemporary Amperex Technology Co. Ltd., the top maker of batteries for electric vehicles, won Hong Kong’s approval to proceed with a listing in the city that may fetch at least $5 billion, which may be the world’s biggest such offering this year.
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The Ningde, China-based company on Thursday secured approval from the Hong Kong stock exchange, a CATL spokesman said, confirming an earlier IFR report. The company plans to start taking investor orders as soon as in May, according to people familiar with the matter.
The approval clears the way for the Chinese company and its bankers to start arranging meetings soon with investors to gauge demand for the stock and determine details of the deal such as pricing. Given its scale, the offering’s success will likely influence investor confidence in Hong Kong and Chinese companies, which have suffered amid all the market turmoil related to tariffs.
At $5 billion, CATL’s float would be the world’s biggest this year. It would also be Hong Kong’s largest listing since Kuaishou Technology Co.’s IPO in 2021.
Second floats of China-listed firms like that of CATL are among the deals powering stock offerings in Hong Kong this year. CATL’s shares have fallen 16% this year in Shenzhen.
The approval comes weeks after China’s securities regulator cleared CATL’s plans for the Hong Kong listing.
Meanwhile, CATL’s global expansion is under increasing threat as China-US tensions intensify. The company earlier this year was added to a US Defense Department list of firms with alleged links to the Chinese military. While inclusion doesn’t carry specific sanctions, US businesses could be discouraged from dealing with the companies on the list.
(Updates with timing of deal’s launch in second paragraph.)
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