CATL's H-shares private placement of $5 billion, second large-scale financing this year

Contemporary Amperex Technology Co., Limited (CATL) announced yesterday its intention to issue approximately 62.385 million new H-shares under the general mandate, with a subscription price set at HKD 628.20 per share, raising a total of about HKD 39.19 billion (approximately $5 billion). This transaction is expected to be the largest equity financing in the Hong Kong market since 2026.

The subscription price was at the lower limit of the previously introduced range of HKD 628.20 to HKD 651.80 per share, representing a discount of about 7% from the closing price of HKD 675.50 on the last trading day. Influenced by the placement news, CATL's H-shares fell as much as 7% today.

First Introduction of 144A Mechanism to Reach US Investors

A highlight of this placement is the first introduction of the 144A issuance mechanism aimed at US investors, allowing the company to directly access US institutional investors and further expand its investor base.

Large-scale Financing Initiated Again in Less Than a Year

This is CATL's second major financing in less than a year. In 2025, the company completed its Hong Kong listing, raising about $5.3 billion, making it the world's second-largest IPO that year. The initiation of this substantial placement in a short period again demonstrates that the company is actively utilizing the Hong Kong stock financing window to reserve funds for global expansion.

The company stated that the funds raised will be used for global capacity expansion, zero-carbon business layout, R&D investment, and supplementing working capital for general corporate purposes.

H-Share Financing Market Continues to Thrive

According to Hong Kong financial officials, the Hong Kong stock market's new share market has raised a cumulative total of $17.9 billion since 2026.

On the same day, China Hongqiao Group initiated a $1.5 billion convertible bond issuance plan, with multiple large transactions being promoted in succession, reflecting the continuous strengthening of international capital's willingness to participate in the Hong Kong market.