CATL plunges more than 8% as the Chinese battery maker unveils $5 billion share placement

A CATL logo is displayed on a smartphone screen with a Hong Kong Stock Exchange (HKEX) logo in the background on May 7, 2025 in Chongqing, China. Li Hongbo | Visual China Group | Shares of China's Contemporary Amperex Technology declined 8.5% Tuesday after the EV battery giant unveiled plans for a roughly $5 billion equity offering in Hong Kong . CATL, which makes lithium-ion batteries for electric vehicles, is seeking to raise $39.2 billion Hong Kong dollars (about $5 billion) through a private placement, as it accelerates investment in its renewable energy business against the backdrop of a global oil crunch. CATL shares were last trading at HK$618, compared with tthe placement price of HK$628.20. Net proceeds are expected to total roughly HK$39.1 billion after fees, with funds earmarked for global new-energy projects, research and development, and general corporate purposes. The company said the funds will support its push into overseas markets, expand production capacity and strengthen its zero-carbon strategy. CATL said demand for power and energy storage batteries remains strong as electrification accelerates globally, and the funds will help reinforce its leadership in the fast-growing sector. The company listed in Hong Kong last year in May after a bumper IPO that saw it raise more than $5 billion, with proceeds largely allocated to overseas projects including a plant in Hungary . The company is also listed in Shenzhen, mainland China. …