CATL is weighing a massive share sale in Hong Kong.

Deal talk accelerates after share rally

Look, the numbers are big. Contemporary Amperex Technology Co. Ltd. — better known as CATL — has been sounding out investors about a possible equity offering that could raise as much as $5 billion in Hong Kong, people familiar with the matter told Bloomberg and other outlets.

The discussions include preliminary meetings with banks and investor education sessions that began this week, according to documents and people briefed on the matter.

That would make the float one of the largest deals globally in recent years and easily Hong Kong’s biggest offering since 2021 if it reaches the top end. The timing is notable: CATL’s shares have been on a tear since they began trading in Hong Kong, and the company’s market value has climbed sharply as investors chased the EV battery leader.

One immediate reason CATL can even consider a sale this big is simply market momentum. The stock traded as high as HK$701 this month before trimming some gains to close at HK$682.5, according to trading data. Those levels follow a roughly 160% gain since the company launched its Hong Kong listing in May last year.

Why CATL is raising money

Frankly, CATL’s plans for proceeds are partly spelled out by the company’s own expansion goals. Executives have signaled a continued push into Europe — notably a factory project in Hungary that’s meant to reach 100 gigawatt-hours of annual capacity — and fresh capital would help fund that build-out.

Point is, CATL is in growth mode and wants options. The company has also been considering issuing convertible bonds to meet some funding needs, according to people familiar with the talks.

Financial performance is backing up the expansion pitch. CATL reported a strong 2025: full-year net income rose to 72.2 billion yuan, up 42.28% year-on-year, while revenue grew to 423.7 billion yuan, a 17.04% increase. Management also proposed a hefty cash dividend — 69.57 yuan for every 10 shares — equal to about half of 2025 net income.

Political scrutiny and bank roles

But the deal isn’t taking place in a vacuum. In April, House Select Committee on the Chinese Communist Party Chairman John Moolenaar sent letters to the chief executives of Bank of America Corp. And JPMorgan Chase & Co., urging them to withdraw from the planned listing work because of CATL’s presence on a Pentagon blacklist and alleged links to the Chinese military.

CATL pushed back. A company spokesman said the allegations are "without merit" and that CATL "has never engaged in any military-related business or activities."

Still, the letters raised political red flags in Washington. Despite that, Bank of America and JPMorgan remained involved in the preparation, according to filing documents tied to the post-listing process. The banks have been part of investor outreach and preparatory talks as CATL gauges demand for a potential offering.

Market impact and Hong Kong’s pipeline

At $5 billion, the deal would almost triple the value of all Hong Kong listings so far this year, which stood at about $2.7 billion before CATL’s potential float, according to market tallies. A single offering on that scale would shift capital-raising statistics for the city dramatically.

Hong Kong has attracted a number of large mainland listings recently, and a successful CATL offering could reinforce confidence in the market after a period of underperformance among Chinese stocks versus global peers, partly driven by tariff tensions and geopolitical worries.

CATL’s own executives say U.S. Tariffs have had "little" effect and that its U.S. Exposure is modest. Still, the trade frictions have rattled investors and led some larger companies to delay or rethink capital plans in the U.S. And Europe while continuing to tap Asian markets.

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Operational footprint and market share

On the operations front, CATL remains the dominant force in China’s power battery installation market. In March 2026, the company recorded domestic installations of 25.71 gigawatt-hours, giving it a 45.54% share of China’s market that month, according to industry data. That was a sequential dip from February’s 49.10% share, but CATL stayed well ahead of its closest domestic rival, BYD, which claimed a 17.83% share.

Those installation figures matter to investors because they translate into long-term revenue visibility from automakers and other customers that lock in volume from major suppliers. CATL’s size also supports economies of scale on materials sourcing and cell production, helping it keep margins healthy even as EV makers demand faster price rollovers.

Deal mechanics and possible timeline

People briefed on the situation say considerations are ongoing and no decision has been finalized. If CATL moves forward, the company could launch the listing as soon as later this month, depending on market conditions and investor appetite.

Underwriting banks typically run roadshows and investor education sessions before a transaction is formally priced, and CATL has started those outreach efforts. A $5 billion target would make it one of the largest equity sales globally in recent memory, comparable to the largest deals in 2025 and 2021 by scale.

That level of size also means underwriters will labor over pricing and allocation to balance long-term shareholder dilution with the near-term goal of raising capital. Convertible bonds remain an alternative route for CATL; such instruments would let the company borrow now with the option for investors to convert into equity later, a structure banks have pitched to large Asian issuers in recent years.

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Why investors might bite

Investors who’ve piled into CATL point to robust demand for EV batteries worldwide, the company’s leadership position in China — the largest EV market — and its aggressive push into overseas production. If CATL can deploy new proceeds into European capacity that starts generating returns within a few years, that will validate the expansion play and soothe dilution concerns.

But if global auto demand weakens or trade barriers ratchet higher, the payoff timeline could stretch out and make a large equity issuance harder to justify.

Still, for now CATL’s numbers give it room to maneuver: strong profits, rising sales and a generous dividend plan that tells investors management is confident about cash flow and margins.

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"The allegations are without merit and the company has never engaged in any military-related business or activities," a CATL spokesman said.