• CATL plans to raise $4 billion in its Hong Kong IPO scheduled for May 20.
• The company will offer 117.9 million shares priced up to HK$263 each.
• Major cornerstone investors include Sinopec and Kuwait Investment Authority.
• Despite market challenges, CATL's net profit surged by 32.9% in Q1.
• The IPO could enhance Hong Kong's status as a major listing venue.

Chinese battery manufacturer CATL (Contemporary Amperex Technology Co., Limited) is poised to raise approximately $4 billion in its Hong Kong IPO debut set for May 20. The move represents one of the largest initial public offerings within the city this year and is part of CATL's strategy to expand its global footprint as the leading supplier of electric vehicle batteries, working with global brands including Tesla and BMW, according to Reuters and India Times.

The company's listing is expected to involve the offering of 117.9 million shares at a maximum price of HK$263 per share, which translates to around HK$31.01 billion or $3.99 billion. Institutional investors will purchase a majority of the shares, with approximately 8.8 million shares allocated for retail investors in Hong Kong. The final pricing is anticipated to be finalized by May 19, as stated in the prospectus filed with the stock exchange, according to Reuters and The Jakarta Post.

CATL has secured significant commitments from cornerstone investors, including Sinopec and the Kuwait Investment Authority, which together have pledged investment of up to HK$2.62 billion to support the IPO. This strong backing highlights the investor confidence in CATL's robust position in the EV battery market. Furthermore, amidst a tumultuous market environment, CATL reported a 32.9% rise in net profit for the first quarter, demonstrating its resilience in a fluctuating economic landscape, according to Reuters and India Times.

In context, this IPO is not only crucial for CATL but is also expected to provide a significant boost to the Hong Kong stock exchange as it seeks to reestablish itself in the wake of a decline in listings since changes to regulatory environments began in 2020. Analysts have speculated that CATL's offerings could revive interest in Hong Kong as a premier choice for future IPOs, potentially recapturing its status as a leading global exchange, according to India Times, The Jakarta Post, and Reuters.