• CATL shares rose over 13% in their Hong Kong market debut, raising $4.6 billion.
• The listing represents the largest IPO globally for 2025, aiming to bolster international expansion.
• Investor enthusiasm remains strong despite the company's designation as a "Chinese military company" by the US.
• 90% of proceeds will fund CATL's European operations, including a new factory in Hungary.
• The IPO signals a revival in Hong Kong's stock market amid regulatory challenges and geopolitical tensions.

Shares of China's battery giant Contemporary Amperex Technology Co., Limited (CATL) surged more than 13% on their debut in Hong Kong, opening at HK$296 after a listing price of HK$263. This initial public offering (IPO) raised $4.6 billion, making it the largest IPO on a global scale for 2025. The company, which produces over a third of electric vehicle batteries worldwide, has its sights set on expanding its international market presence, particularly in Europe, according to channelnewsasia and indiatimes.

The IPO is significant not only for its size but also for its strategic implications, as CATL is actively securing a stronger foothold in global markets amidst a competitive landscape. The funds raised will primarily aid in constructing its second factory in Hungary and will support a significant partnership with automotive manufacturer Stellantis to develop a new battery plant in Spain. This ambitious expansion comes as CATL aims to tap into the growing European electric vehicle market, alongside its existing operations in Germany, according to indiatimes and scmp.

Despite being designated a "Chinese military company" by the US Defense Department, which has drawn attention from Congress and implications for investor participation, CATL’s IPO attracted significant interest from both institutional and retail investors. Notably, American investors were excluded from the IPO due to its structure under Regulation S, which only permits non-US investors to take part. Major investment players, including Kuwait’s sovereign wealth fund, participated eagerly, reflecting a renewed interest in quality Chinese enterprises, despite geopolitical tensions, according to scmp.

The overwhelming investor enthusiasm is underscored by CATL’s strong market position, commanding about 37% of the global electric vehicle battery market and benefiting from China's booming EV sector. CATL's revenue primarily derives from domestic sales, yet the company’s proactive international strategy aims to shift this dynamic. The Hong Kong stock exchange is keenly interested in restoring its standing as a major IPO venue following a downturn since 2020. CATL's IPO is a pivotal step in this regard, drawing favorable market sentiments and signaling optimism for future listings, according to channelnewsasia and indiatimes.