According to the latest prospectus filed by CATL, the Chinese battery manufacturer is aiming to raise at least HK$31.01 billion ($3.99 billion) in its Hong Kong listing. The electric battery giant is selling  117.9 million shares at a maximum offer price of HK$263 per share. In the case of the greenshoe option and offer size adjustment, the deal is expected to increase to $5.3 billion. 

According to Dealogic data, CATL reaching $ 4 billion will make it the biggest listing in the world for the year, beating JX Advanced Metal’s $3 billion March IPO in Tokyo. 

Global Investors 

The prospectus issued by CATL showed that more than 20 cornerstone investors, led by Sinopec and Kuwait Investment Authority, have subscribed to buy $2.62 billion worth of CATL shares. 

Hong Kong Retailers 

CATL has left 8.8 million shares available for Hong Kong’s retail investors to bid for. The shares are due to be priced between coming Tuesday and Friday, with the final price to be announced on or before 19 May. 

CATL Shares in China Accelerated 

As soon as CATL launched its deal, the stocks of the battery manufacturer giant accelerated by 3.6 percent, reaching a six-week high. The company also outpaced a 0.9 percent lift in China’s blue-chip CSI300 index. 

The Hong Kong shares of CATL are expected to be sold at a small discount to the Shenzhen stock’s closing price on Friday. 

CATL to Enter in European Market 

After making the listing announcement, CATL said it would invest 90% of the proceeds raised in the construction of its Hungary factory. CATL is planning to construct this factory to make batteries for European automakers like BMW and Stellantis. The production of batteries through this factory is expected to start this year. 

US Accuses CATL of Working with Chinese Military

In January, the US Defense Department accused CATL of working with the Chinese military. The battery manufacturing company clarified in the prospectus that CATL is working with the US Department to correct the false label. The company wrote 

 “It doesn’t restrict us from doing business with entities other than a few U.S. government authorities. Therefore is expected to not have a substantial adverse impact on business.”