CATL Raises $5 Billion in Hong Kong's Largest Placement of 2026

China's CATL, the world's largest EV battery maker, sold 62.4 million new H-shares at HK$628.20 each on Tuesday, raising HK$39.2 billion ($5 billion).

It is the largest equity offering in Hong Kong this year and the second largest globally in 2026. The price marked the bottom of the marketed range and a 7% discount to Monday's close of HK$675.50.

The Details

The order book filled within an hour of launch, with more than 150 institutions participating, including hedge funds, sovereign wealth funds, and existing CATL shareholders.

Use of proceeds: global factory expansion, the development of CATL's zero-carbon business, R&D, and general working capital, according to the stock-exchange filing.

Despite the strong demand, the stock dropped on the dilution. CATL's Hong Kong shares opened down 6.7% on Tuesday and fell as much as 7.6% to HK$624 by midday. CNBC's headline put the move at over 8%. The Hong Kong listing has still risen about 137% from the HK$263 IPO price in May 2025.

Why CATL keeps tapping HK

CATL held a 38.1% share of the global EV battery market in the first ten months of 2025, according to South Korean research firm SNE Research, ranking it number one worldwide. Its customer list includes Tesla, BMW, Volkswagen, Xiaomi, and Nio.

The placement is the biggest single capital raise in Hong Kong since CATL's own $5.25 billion listing in May 2025. Last week, a Sinopec unit sold 8.5 million CATL Hong Kong shares for about $770 million, cashing in on the rally.

H-shares are trading at roughly a 35% premium to the A-shares with very low free float, said Dickie Wong of uSMART Securities. "The placement should help improve liquidity and attract more long-term international investors and index funds," he added, while flagging that valuations look rich.

The macro tailwind

The fundraising rides a separate wave. Chinese exports of solar products, batteries, and electric vehicles hit record highs in March, according to energy think tank Ember, as the Iran war oil shock accelerates the global pivot to clean energy. CATL is the dominant supplier on that supply chain.

Winston Ma, executive director of the Global Public Investment Funds Forum, called the timing "a perfect wave" of surging stock price, supply-side fossil-fuel shock, and a Hong Kong market hungry again for heavyweight tech leadership.

Sources: Nikkei, Caixin, CnEVPost, DealStreet Asia, CNBC, Business Times SG