CATL’s landmark Hong Kong ipo raises €4.1 billion to boost European battery factories amid its dominance in the global EV market.
Chinese battery titan CATL has successfully raised approximately €4.1 billion in its initial public offering (IPO) on the Hong Kong Stock Exchange, marking the largest IPO of 2025 so far. The offering price was set at 263 Hong Kong dollars per share, roughly €30, hitting the top end of the targeted price range. If the greenshoe option is fully exercised, the total funds raised could rise to about €4.7 billion.
A total of 125.4 million shares were allocated to institutional investors, while private investors purchased 10.16 million shares. Before this listing, CATL was listed on China’s Shenzhen Stock Exchange, a market with far less international accessibility.
The fresh capital injection will largely support CATL’s ambitious expansion plans in Europe. As detailed in the company’s IPO filing in February, a significant portion of the proceeds will finance the construction of a new battery cell factory in Debrecen, Hungary. This site, currently under development, is designed to have an annual production capacity of 100 gigawatt hours (GWh). The total investment in this Hungarian facility is projected to reach €7.3 billion.
Strategically, the Debrecen battery plant will be located adjacent to BMW’s new factory, which is gearing up to manufacture vehicles based on BMW’s cutting-edge ‘Neue Klasse’ platform. This alignment aims to strengthen CATL’s partnership with the German automotive giant and reinforce its foothold in the European electric vehicle (EV) supply chain.
This upcoming factory will be CATL’s second in Europe, joining its existing facility near Erfurt, Germany, which already serves as a critical production hub.
The IPO size is notable not only for its sheer volume but also for its timing. As global demand for EV batteries surges, CATL is capitalising on its dominant market position. According to data from South Korean research firm SNE Research, CATL controlled 38 per cent of the global EV battery market in 2024. In China, its home turf, the company’s market share was close to 50 per cent, underscoring its overwhelming dominance.
CATL’s growth reflects the wider boom in battery manufacturing as the automotive industry pivots towards electrification and cleaner energy solutions. The company’s expansion in Europe is particularly significant given the continent’s push to reduce carbon emissions and foster local supply chains for critical EV components.
The Hong Kong IPO is expected to further solidify CATL’s financial position, enabling the company to enhance research and development, expand production capabilities, and meet increasing demand from global automakers.
Moreover, the greenshoe option – allowing the sale of an additional 17.7 million shares – provides flexibility to increase the total capital raised, reflecting strong investor appetite for CATL shares.
In summary, CATL’s record-breaking Hong Kong IPO not only fuels its European growth ambitions but also highlights its continued leadership in the global electric vehicle battery sector, positioning the company for sustained success in the rapidly evolving automotive landscape.
