CATL falls nearly 7% on US$5 billion placement to expand renewables
Battery maker says it plans to sell 62.4 million Hong Kong-traded shares for HK$628.20 apiece to at least six unspecified investors
Shares of Contemporary Amperex Technology Ltd (CATL) tumbled in Hong Kong on Tuesday following the announcement of a plan to raise HK$39.2 billion (US$5 billion) from a share placement to fund expansion of its renewables business amid a global oil crunch.
The world’s largest manufacturer of batteries for electric vehicles and energy storage slumped 6.9 per cent to close at HK$629, the steepest decline since October 10, 2025. The company’s yuan-denominated shares held up relatively well, slipping 1.7 per cent to 427.67 yuan in Shenzhen.
In a statement to Hong Kong’s stock exchange before trading opened, the company said it planned to sell 62.4 million Hong Kong-traded shares for HK$628.20 apiece to at least six unspecified investors. The offer price represents a discount of about 7 per cent to CATL’s closing price on Monday.
The placement is the latest move by CATL to expand its footing in the green-energy industry as the world’s key economies are rattled by soaring crude prices due to the US-Israel war against Iran. Although there is a ceasefire in place, the Iranian and US blockades of the Strait of Hormuz have choked oil supplies and lifted crude prices to around US$100 a barrel, which economists have warned is likely to trigger stagflation.
The refinancing would consolidate CATL’s core competitive edge in the global market, the company said in the statement.