Tesla Battery Provider CATL Pops in Its First Day of Hong Kong Buying and selling

Key Tesla provider CATL rose 13% in its Hong Kong buying and selling debut on Tuesday morning.

The world’s largest battery maker filed to go public in Hong Kong earlier this yr, primarily to fund its European growth. CATL has been listed on the Shenzhen Inventory Change since 2018.

The preliminary public providing raised HK$35.7 billion, or $4.6 billion, based on an organization submitting. That measurement makes it one of many largest international listings of the yr. The inventory was listed at HK$263 per share.

Corporations pursue twin listings — the place an organization is traded on a couple of change — as a result of it offers them entry to extra capital and lets their shares commerce for an extended time if the exchanges are in several time zones. Hong Kong listings are a preferred choice for Chinese language corporations as a result of they permit worldwide traders to purchase inventory.

In a doc filed with the Hong Kong change in February, CATL stated that a part of the cash raised shall be used to construct a $7.6 billion battery plant in Hungary. The remaining shall be used for every day enterprise. CATL has a partnership with Jeep and Fiat maker Stellantis in Spain.

CATL is a significant provider to Tesla, promoting lithium-iron phosphate batteries to its Shanghai manufacturing facility.

Final week, HSBC analysts led by Elaine Chen wrote in a word that CATL has a “dominating home place” within the EV battery market, enabled by “steady merchandise improve and innovation.”

They added that they see the corporate “unlock extra volumes alternatives in Europe on its superior-than-peers affordability and main lithium iron phosphate (LFP) expertise.”

CATL is ramping up competitors towards Tesla and Chinese language EV star BYD.

Late final month, CATL unveiled a brand new battery it stated can out-charge BYD and Tesla. It launched an up to date model of its Shenxing battery, which it stated permits electrical automobiles so as to add 520 kilometers, or 323 miles, of vary in simply 5 minutes of charging.

EV corporations try to chop cost occasions to entice consumers who’re cautious of switching to electrical.

In January, the Division of Protection added CATL to its record of “Chinese language army corporations” working in america. CATL denied it had any affiliation with the Chinese language army and stated it was ready to contest the choice with authorized motion if obligatory.