Shares of China’s Contemporary Amperex Technology Co. Ltd. (CATL) fell more than 8% on Tuesday after the electric vehicle battery maker announced plans to raise about $5 billion through a share placement. The company said it is seeking to raise approximately HK$39.2 billion via a private placement in Hong Kong, with the shares priced at HK$628.20 each. The stock was last trading at around HK$618 following the announcement.
Net proceeds from the offering are expected to total about HK$39.1 billion after fees. CATL said the funds will be used to support expansion into overseas markets, increase production capacity, invest in research and development, and advance its zero-carbon strategy.
The company said demand for power and energy storage batteries remains strong amid the global shift toward electrification, and the new capital will help strengthen its position in the sector.
CATL, which produces lithium-ion batteries for electric vehicles, is listed in both Hong Kong and Shenzhen. The company raised more than $5 billion during its Hong Kong listing last year, with funds largely directed toward international projects, including a manufacturing facility in Hungary.
Despite the share price decline, analysts said the company continues to show strong earnings momentum. CATL recently reported first-quarter net profit of 20.7 billion yuan, up about 49% year-on-year.
Market analysts noted that sustained production levels, high capacity utilisation and ongoing expansion are likely to support future growth, while rising oil prices and increasing demand for electric vehicles and energy storage systems continue to drive long-term industry demand.
