(April 21): Contemporary Amperex Technology Co’s latest share sale — priced at a 5.1% discount — was more than twice subscribed. That underscores strong investor appetite for the stock even after the battery maker’s 20% rally this year.
The inquiry-based sale of 58 million shares or 1.27% of CATL’s total shares, was priced at 410.34 yuan apiece on Monday following bids from 50 institutional investors, according to a filing with the Shenzhen Stock Exchange. That compares with a 6.9% discount in a similar transaction in November. CATL shares surged as much as 6.1% to a record in Hong Kong and traded as much as 3.6% higher in Shenzhen following the announcement of the details of the deal worth 23.8 billion yuan.
China’s technology and battery stocks have been on a blistering rally, with the ChiNext Index up 87% over the past year and recently reaching an 11-year high. Energy storage stocks have gained momentum recently as geopolitical tensions in the Middle East drove a jump in oil prices. Some companies in the industry are riding the frenzy to strong share sales in Hong Kong, including sizzling debuts by companies such as Nvidia Corp supplier Victory Giant Technology Huizhou Co, energy storage equipment maker Sigenergy Technology Co and robotics software unicorn Manycore Tech Inc.
Compared with other transactions, CATL’s latest sale attracted relatively strong interest. A large shareholder in Sharetronic Data Technology Co Ltd earlier sold shares at a 24% discount, despite the offering also being more than twice oversubscribed. Meanwhile, 12 million shares are changing hands in Beijing Compass Technology Development Co at a 14% discount, according to a filing.
Inquiry‑based stake transfers usually carry a six‑month lock‑up, meaning that investors who participated in the previous sale will be free to exit their positions next month. Such transfers are a channel structure often used onshore by early investors to reduce holdings without adding pressure to the secondary market.
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“These inquiry‑based stake transfers are fully market‑driven and offer a clear read on investor sentiment, with discounts varying widely,” said Du Kejun, a fund manager at Shandong Camel Asset Management. “For an industry leader like CATL, the narrow discount reflects institutional confidence six months out while the strengthening premium in Hong Kong underpins the view that there is room to run.”
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