Shares in Chinese battery giant CATL soared more than 13% on its Hong Kong debut Tuesday after raising $4.6 billion in what is said to be the world's biggest initial public offering this year.
A global leader in the sector, CATL produces more than a third of all electric vehicle (EV) batteries sold worldwide.
The firm has been buoyed by a rapid growth in China's domestic electric vehicle sector and it now works with major brands including Tesla, Mercedes-Benz, BMW and Volkswagen.
It is already traded in the southern Chinese city of Shenzhen, and its plan for a secondary listing in Hong Kong was announced in December.
In morning trade its Hong Kong shares hit a high of HK$299.80 Hong Kong dollars ($38.4), up 13.7% from its listing price of HK$263.
Founded in 2011 in the eastern Chinese city of Ningde, Contemporary Amperex Technology Co., Limited (CATL) has been aided by strong financial support from Beijing, which has sought in recent years to shore up domestic strength in certain strategic high-tech sectors.
It has also weathered a fierce price war in China's expansive EV sector that has put smaller firms under huge pressure to compete while remaining financially viable.
Its net profit jumped 32.9% in the first quarter, with sales up 6.2% year-on-year to 84.7 billion yuan ($11.7 billion).
And funds raised from a secondary listing could be used to accelerate CATL's overseas expansion, particularly in Europe.
The battery giant is building its second factory on the continent in Hungary after launching its first in Germany in January 2023.
CATL announced in December that it would work with automotive giant Stellantis on a $4.6 billion factory to make EV batteries in Spain, with production to begin by the end of 2026.
Tuesday's blockbuster listing comes as Hong Kong's stock exchange is eager for the return of big-name Chinese listings in hopes of regaining its crown as the world's top IPO venue.
The Chinese finance hub saw a steady decline in new offerings after Beijing's regulatory crackdown starting in 2020 led some mainland mega-companies to put their plans on hold.
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