China’s leading lithium battery manufacturer CATL has achieved its secondary listing on the Hong Kong Stock Exchange (HKEX) today, raising HKD35.7 billion (USD4.6 billion) in the city’s largest IPO by proceeds in four years.
Kirkland & Ellis, Llinks Law Offices, Linklaters and CM Law Firm advised parties involved in the listing.
Its debut also positions the battery giant to potentially secure the title of the world’s largest IPO in 2025 to date. Hong Kong Financial Secretary Paul Chan highlighted in his blog on Sunday that the listing would push the city’s year-to-date fundraising total past HKD600 billion, temporarily reclaiming its position as the world’s top destination for new listings.
Since 2009, the HKEX led global IPO fundraising rankings seven times, but slipped out of the top five between 2022 and 2023 amid subdued market conditions. A resurgence in 2024, bolstered by major listings such as Midea Group, saw Hong Kong climb back to fourth place globally.
Kirkland & Ellis advised CATL on Hong Kong and US laws through partner Lu Mengyu, while Llinks led on PRC law matters with a team spearheaded by partners Chen Zhen, Zhang Zhengyi and Cai Ruosi.
On the underwriters’ side, BofA Securities, CICC, China Securities International, JP Morgan, Goldman Sachs, Morgan Stanley and UBS received Hong Kong and US counsel from Linklaters, led by partners Christine Xu and Lipton Li. CM Law’s team handled their PRC legal matters under managing partner Wu Xiaoliang and partner Wei Wei.
“CATL’s Hong Kong listing will further internationalise China’s new energy industry, driving cost optimisation and technological advancement across the global sector,” said Llinks partner Chen.
The prospectus states that proceeds from the listing will primarily fund the construction of a EUR7.3 billion battery manufacturing base in Debrecen, Hungary. CATL originally announced the plan in 2022.
The company has been aggressively expanding its overseas footprint, having already established a EUR1.8 billion production facility in Thuringia, Germany, and accelerated work on a EUR4.1 billion joint venture with Stellantis in Spain. Concurrently, it is developing battery material supply chains in Indonesia.
Overseas expansion requires significant capital, and “a Hong Kong listing remains one of the most efficient overseas fundraising avenues”, Chen said.
Since its 2018 debut on Shenzhen’s ChiNext Market, CATL reportedly explored a Swiss secondary listing before settling on Hong Kong. Chen described the decision as “strategically astute”, adding that “it aligns with offshore financing needs while enhancing synergy with its A-share presence”.
Hong Kong’s capital market has shown a marked recovery since late 2024, with the “A+H” dual-listing trend gaining momentum. More than 20 A-share companies have formally submitted HKEX applications in 2025, with over 10 others disclosing plans to follow suit.
CATL’s IPO was executed at “lightning speed” despite complex global macroeconomic and geopolitical conditions. The process took just one month from formal launch to the submission of its Hong Kong listing application on 11 February – including the Lunar New Year holiday – followed by approval from the China Securities Regulatory Commission on 25 March and HKEX listing committee clearance on 10 April. “Every day was a race against time,” said Chen.
For mainland Chinese companies considering Hong Kong listings, Chen cautioned: “The HKEX places greater emphasis on rigorous disclosure, governance compliance, data security and ESG frameworks – particularly as ESG governance requirements have been upgraded.” He advised companies to optimise their corporate structures and establish ESG systems early, in collaboration with professional advisers.
Headquartered in Ningde, Fujian province – the hometown of founder Robin Zeng – CATL has dominated global power battery sales for eight consecutive years. The company reported 2024 revenue of RMB362 billion (USD50.1 billion), with net profit rising 15% year-on-year to RMB50.7 billion. In the first quarter of 2025, revenue reached RMB84.7 billion, while net profit rose 32.85% to RMB13.96 billion.
The stock debuted at HKD296 per share, a premium of 12.5% compared to the offer price, the listing drew 23 high-profile cornerstone backers including Sinopec, the Kuwait Investment Authority, Hillhouse Capital, Orchid Asia and Boyu Capital, securing USD2.6 billion in combined commitments from these domestic and international institutions.
