The approval clears the way for the Chinese company and its bankers to start arranging meetings soon with investors to gauge demand for the stock and determine details of the deal such as pricing.
Given its scale, the offering’s success will likely influence investor confidence in Hong Kong and Chinese companies, which have suffered amid all the market turmoil related to tariffs.
At US$5 billion, CATL’s float would be the world’s biggest this year. It would also be Hong Kong’s largest listing since Kuaishou Technology Co.’s IPO in 2021.
See also: CLI's China REIT to list by end of year; to raise $375 million issuing 400 million units
Second floats of China-listed firms like that of CATL are among the deals powering stock offerings in Hong Kong this year. CATL’s shares had fallen 18% this year in Shenzhen as of yesterday.
The approval comes weeks after China’s securities regulator cleared CATL’s plans for the Hong Kong listing.
Meanwhile, CATL’s global expansion is under increasing threat as China-US tensions intensify. The company earlier this year was added to a US Defense Department list of firms with alleged links to the Chinese military. While inclusion doesn’t carry specific sanctions, US businesses could be discouraged from dealing with the companies on the list.
Table: Bloomberg
