April 13 (Reuters) - China's Contemporary Amperex Technology is considering a potential Hong Kong share sale that could raise as much as $5 billion after a recent surge in its stock, with early
CATL explores potential $5 billion Hong Kong share sale after stock rally, sources say
CATL Considers Major Fundraising Amid Stock Surge
By Dagmarah Mackos and Yantoultra Ngui
Potential Share Sale Details
April 14 (Reuters) - China's Contemporary Amperex Technology is considering a potential Hong Kong share sale that could raise around $5 billion, two sources with knowledge of the matter said, as the world's biggest electric vehicle battery maker weighs fresh funding after a sharp run-up in its stock.
CATL is in talks with banks about the possible deal, the sources said, adding the timing, size and final structure have not been decided. Convertible bonds are among the options under consideration, one of the sources said.
The sources declined to be named as the discussions are private.
Media Reports and Company Response
Bloomberg and IFR reported the funding deliberations on Monday. CATL did not respond to Reuters requests for comment.
Stock Performance and Valuation
CATL's Hong Kong-listed shares have surged 150% from their HK$263 ($33.57) listing price in May 2025 and were down about 3.3% on Tuesday.
Its Shenzhen-listed shares are up about 17.3% year-to-date, valuing the company at about $291 billion, according to LSEG data.
Previous Fundraising and Expansion Plans
CATL raised about $4.6 billion in its Hong Kong debut in May 2025, the world's biggest listing that year. Most of the proceeds were earmarked to build a factory in Hungary, part of its plan to make batteries in Europe for automakers such as BMW, Stellantis and Volkswagen.
Recent Financial Results
In March, CATL, which also supplies major EV brands including Tesla, Xiaomi and Nio, reported fourth-quarter and 2025 net profit that beat estimates.
Industry Context
The fundraising talks come as China's EV sector remains fiercely competitive. A Reuters analysis this month found that the country's crowded EV market has made sustained profitability difficult, even for leading players.
Exchange Rate and Reporting Credits
($1 = 7.8345 Hong Kong dollars)
(Reporting by Dagmarah Mackos and Yantoultra Ngui. Editing by David Goodman and Mark Potter)
