CATL(SZ:300750) Cai Jing Wang·2025-05-12 09:17Core Viewpoint - The ongoing trend of leading A-share companies listing in Hong Kong continues, with CATL officially launching its international placement for an IPO on May 20, aiming to raise between $4 billion to $5 billion, potentially becoming the largest IPO in Hong Kong in four years and the top global IPO in 2025 [1][2]. Group 1: IPO Details - CATL plans to issue 118 million shares at a maximum price of HKD 263 per share, with the total fundraising expected to reach $4 billion to $5 billion [2]. - The IPO has attracted cornerstone investors including major global energy firms and sovereign wealth funds, with total subscription amounts reaching up to HKD 20.371 billion [2]. - Sinopec and the Kuwait Investment Authority are the largest cornerstone investors, each committing $500 million [2]. Group 2: Fund Utilization - Approximately 90% of the funds raised from the IPO will be allocated to the construction of CATL's factory in Hungary, enhancing local production capacity in Europe [3]. - The remaining 10% will be used for working capital and other general corporate purposes [3]. - Establishing the Hungarian factory is crucial for meeting the growing demand for power and energy storage batteries in Europe, ensuring a stable supply chain for customers [3]. Group 3: Market Position and Performance - CATL maintains its position as the global leader in power and energy storage batteries, with a market share of 37.9% in power battery installations and 36.5% in energy storage batteries in 2024 [5]. - Despite a decline in revenue by 9.7% to CNY 362.013 billion in 2024, the company reported a net profit increase of 15.01% to CNY 50.745 billion [6]. - The revenue decline is attributed to falling prices of raw materials like lithium carbonate, while the net profit growth is supported by enhanced R&D capabilities and product competitiveness [6].