CATL's HK listing to raise funds for its Hungary battery plant

China's battery giant CATL has applied to list on the Hong Kong Stock Exchange on Tuesday night, after being reported to plan to raise at least US$5 billion (HK$39 billion).

CATL said the net proceeds would be used to advance its the construction of Phase I and II of its Hungary project. The company said in 2022 that it would build a 7.3 billion euro (HK$58.75 billion) battery plant in the eastern European country.

Chinese carmakers and their suppliers are accelerating their overseas expansion amid the competitive home market and the high import tariffs imposed by the European Union.

A listing of the Shenzhen-listed firm, the largest battery maker in the world, would be the largest listing in Hong Kong in four years, according to Dealogic data. At US$5 billion, it would be the biggest listing since Kuaishou Technology's (1024) 2021 initial public offering that raised US$6.2 billion, the data showed.

REUTERS AND STAFF REPORTER