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<Research>BOCOMI: CATL's HK IPO Price Cap Offers Limited Discount vs A-Shrs; A/H Listing to Woo Domestic, Foreign Capital
BOCOM International’s report mentioned the announcement by CATL (03750.HK)(300750.SZ) about its Hong Kong listing plan, which initiated international placement book-building....
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<Research>BOCOMI: CATL's HK IPO Price Cap Offers Limited Discount vs A-Shrs; A/H Listing to Woo Domestic, Foreign Capital
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BOCOM International’s report mentioned the announcement by CATL (03750.HK)(300750.SZ)  -0.820 (-0.315%)   about its Hong Kong listing plan, which initiated international placement book-building. The stock was forecast to list and start trading on the main board of the Hong Kong Stock Exchange next Tuesday (20th). The maximum price per share was set at HKD263, which was only about a 6% discount compared to the closing price of CATL's A-shares (300750.SZ)  -0.820 (-0.315%)   on May 13 (RMB258.77).

The base offering size for this global issuance of H-shares was 118 million shares, with a total fundraising amount of approximately USD4 billion at the maximum price, and up to 156 million shares may be issued (assuming full exercise of the over-allotment option), accounting for about 2.6-3.4% of the company's current issued share capital, with limited dilution to EPS.

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Cornerstone investors include Sinopec, Hillhouse Capital, and Kuwait Investment Authority, with a total subscription amount of HKD20.371 billion (approximately USD2.628 billion), accounting for 66% of the total fundraising amount. CATL's pricing close to the high level of A-share prices and over HKD20 billion in cornerstone investor subscriptions reflected global investors' recognition of CATL's value.

BOCOM International viewed that CATL's global layout is pioneering, optimistic about its long-term development. After listing in Hong Kong, CATL will become a dual-platform A/H share listed company, capable of attracting both domestic and foreign capital, supporting overseas capacity expansion and technology R&D; at the same time, it can leverage localized production in Europe to address trade uncertainties, further consolidating its global leadership position in the battery sector, setting a new benchmark for Chinese companies going global.

CATL's battery technology and global layout lead the industry, and its expansion into battery swapping business is promising for long-term development. CATL (300750.SZ)  -0.820 (-0.315%)   currently has a market cap corresponding to a 18x 2025 P/E, offering attractive valuation. The broker maintained a Buy rating with a target price of RMB314.11.
(HK stocks quote is delayed for at least 15 mins.) (A Shares quote is delayed for at least 15 mins.)

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