- CATL's issue size adjustment option will be exercised and it will raise about HK$35.66 billion ($4.57 billion) in total.
- CATL's offering received a more-than-expected reception, in part due to optimism from the truce in the US-China trade war.
CATL (SHE: 300750) is set to price its Hong Kong listing at HK$263 ($33.7) per share and expand its offering to raise about $4.6 billion, Reuters said in a report today, citing two people familiar with the matter.
It would be the world's largest listing in 2025, the report said, citing data from the London Stock Exchange.
CATL launched its sharing offering for a Hong Kong listing on May 12, which will last until May 15. It planned to offer 118 million H shares globally, which will be offered at no more than HK$263.
This means that CATL planned to raise as much as HK$31 billion, or $3.99 billion, in the Hong Kong listing, in the event that the offer size adjustment option is not exercised.
That offering size adjustment option will be exercised, meaning an additional 17.7 million shares in the offering, according to a Reuters report today.
With the additional offering, CATL's listing will raise about HK$35.66 billion ($4.57 billion), the report noted.
The HK$263 offering price represents a discount of about 6 percent to CATL's closing price of RMB 258.77 in Shenzhen on Tuesday.
A company's Hong Kong shares usually trade at a lower price than its mainland shares. With an offshore listing, investors are often offered shares at a lower price to incentivize them to buy new shares, the Reuters report noted.
Separately, according to a report today by local media outlet Tencent News, CATL has received over $50 billion in subscriptions from institutional investors as of May 14.
Excluding the roughly $2.6 billion subscribed by cornerstone investors, CATL's share offering was oversubscribed 30 times, the report noted.
CATL's offering received a more-than-expected reception, in part due to the optimism created by the truce in the US-China trade war.
The battery maker's teams, along with intermediaries and some institutional investors, had previously been slow to agree on a pricing range, so only the upper limit of the offering price was set, without a lower limit, according to Tencent News.
A number of hesitant institutional investors changed their minds and decided to participate after the US and China released progress on trade talks on May 12, according to the report.
Trading of CATL on the Hong Kong stock market will begin on May 20 under the stock code 3750.
($1 = HK$ 7.8039)
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