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(Bloomberg) -- Contemporary Amperex Technology Co. Ltd. has started taking investor orders for a Hong Kong stock offering that is likely to be the world’s biggest listing this year.
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CATL, as the Chinese electric-vehicle battery giant is known, is seeking to raise as much as HK$41 billion ($5.3 billion), according to its listing document on Monday. That’s if the deal is upsized and the greenshoe exercised on top of the base offering of up to HK$31 billion.
The company has received enough investor interest for its Hong Kong share sale early on the first day the deal was launched on Monday, according to people familiar with the matter. The Fujian-based company is marketing shares at a maximum price of HK$263 each, or 1.4% lower than Friday’s close in Shenzhen but roughly equivalent to Thursday’s. Pricing could be decided as soon as Tuesday and the stock is expected to begin trading May 20.
The share offering would more than double proceeds in Hong Kong’s market for listings this year, which Bloomberg Intelligence predicts will surge to more than $22 billion. The bonanza’s been driven by Chinese companies going ahead with their listing plans in the Asian financial hub despite the turmoil brought on by US President Donald Trump’s tariffs, which have caused many deals to be postponed in America and Europe.
CATL shares rose 3.5% to close at 257 yuan in Shenzhen trading, outperforming the benchmark index.
CATL is offering about 118 million shares in the base offering, which could increase to around 136 million if the company upsizes the deal by 15%. With the greenshoe option, the company would be selling nearly 156 million shares.
Cornerstone investors, which agree to hold shares from the deal for at least six months, have committed to buy about $2.6 billion worth of stock, according to the prospectus. They include Chinese state-owned oil company Sinopec, the Kuwait Investment Authority and alternative-asset manager Hillhouse Investment.
CATL said it was doing the deal in the form of a so-called Regulation S offering, which doesn’t allow sales to US onshore investors and exempts the issuer from certain US regulatory filing obligations, confirming an earlier Bloomberg News report. The limitations on certain types of US investors indicates that US-China tensions may be spilling into the new-listings landscape.