By Summer season Zhen and Selena Li
HONG KONG (Reuters) -Potential buyers in CATL’s upcoming $5 billion Hong Kong itemizing have been instructed the inventory could also be bought at a lower than 10% low cost to the Chinese language battery maker’s Shenzhen-listed shares, based on three sources with direct data of the matter.
The low cost supplied may very well be round mid-single digits, two of the sources added.
CATL, whose automaker shoppers embody Tesla and Stellantis, is assembly buyers forward of launching the ebook constructing for the deal subsequent week that may very well be the biggest new share sale in Hong Kong for 4 years.
Buyers are pushing CATL to cost the Hong Kong shares at the very least 10% beneath the Shenzhen-traded inventory, one of many sources and a fourth particular person instructed Reuters.
The pricing has not been finalised, the sources mentioned.
CATL needs to have cornerstone and anchor buyers subscribe for round half the shares to be bought within the deal, two of the sources added.
The sources couldn’t be named discussing data that has not but been made public.
CATL didn’t reply to a request for remark from Reuters.
CATL shares have been buying and selling 3.0% larger on Wednesday at 238.61 yuan. Nonetheless, the inventory has fallen 10.3% this 12 months. China’s CSI300 index was up 0.6% on Wednesday.
Hong Kong shares usually commerce at a reduction in comparison with mainland shares. Buyers are often supplied inventory at a less expensive value in offshore listings like this as an incentive to purchase into the share providing.
Midea Group priced its Hong Kong shares at a few 20% low cost when it raised $4 billion in an inventory in September final 12 months.
5 mainland to Hong Kong listings since 2022 led by Midea, China Tourism Group Responsibility Free and S.F. Holding had value ranges throughout their bookbuilds with reductions between 28% and 37%, based on International Fairness Analysis analyst Arun George who publishes on Smartkarma.
CATL’s itemizing can be the biggest in Hong Kong since 2021, when Kuaishou Expertise raised $6.2 billion in an preliminary public providing.
The battery maker has beforehand mentioned in a regulatory submitting that a part of the funds raised will likely be used to construct a 7.3 billion euro ($8.28 billion) battery plant in Hungary.
CATL’s web revenue within the first three months in 2025 rose 32.9% year-on-year to 14 billion yuan ($1.91 billion), its quickest tempo in almost two years.
It has been extending its lead within the battery market with a 38% share globally in 2024. That elevated from 36% in 2023, based on knowledge from SNE Analysis, pushed by CATL’s sooner progress in shipments of batteries for power storage methods and its wide selection of auto sector shoppers.
