From ESS News
The world’s leading battery maker, CATL, completed a share placement in Hong Kong on Tuesday, raising about $5 billion in a deal that marks the largest share offering on the stock exchange so far this year.
CATL sold 62.385 million new overseas foreign capital shares (H shares) at HK$628.20 apiece, raising HK$39.2 billion ($5 billion), according to a filing to the Hong Kong Stock Exchange. The placement price was set at the bottom of its marketed range and represented a discount of about 7% to its Monday closing price of HK$675.50. The entire allocation was completed within an hour of launch, with more than 150 investors – including hedge funds, sovereign wealth funds, and existing shareholders – competing for the shares.
The company plans to use the net proceeds to support the expansion of its global manufacturing footprint, research and development, and the development of its zero-carbon business. A portion of the funds will also be allocated to working capital and general corporate purposes.
The fundraising comes amid strong recent performance. CATL reported robust first-quarter 2025 results, with net profit rising 32.85% year-on-year to CNY 13.96 billion ($1.9 billion), while total battery sales reached 126 GWh, up 33% from a year earlier.
Last May 2025, CATL raised about $4.6 billion in its Hong Kong listing, the world’s largest in 2025, and said most of the proceeds would fund a battery plant in Hungary.
Meanwhile, Sungrow Power Supply has once again submitted a listing application to the Main Board of the Hong Kong Stock Exchange, with China International Capital Corporation (CICC) acting as sole sponsor.
As part of its dual-listing strategy, the company first filed on October 5 targeting HK$987 million raise. Founded in 1997, Sungrow was listed on the Shenzhen Stock Exchange in November 2011 and is currently valued at approximately $38 billion.
In its April 24 application for the issuance and listing of H shares, Sungrow reported steady financial growth. From 2023 to 2025, it achieved operating revenue of CNY 72.159 billion, CNY 77.704 billion and CNY 88.914 billion, respectively, and net profit of CNY 9.609 billion, CNY 11.264 billion and CNY 13.533 billion.
Overseas revenue surged in 2025 to CNY 53.99 billion, up 49.5% year-on-year, with its share of total revenue rising from 46.7% in 2024 to 60.7%, surpassing the 50% threshold for the first time.
Proceeds from the Hong Kong IPO are expected to be used for overseas energy storage production bases in Poland and Egypt, R&D of solid-state batteries and next-generation energy storage technologies, as well as AIDC power supply systems and integrated solar-storage projects.
However, the expansion strategy coincides with a sharp decline in utilisation rates in core photovoltaic inverter operations. According to the prospectus, capacity utilisation peaked at 212.6% in 2023, fell to 163.1% in 2024, and further declined to 85.0% in 2025, indicating a significant reduction in production intensity.
The business move was also reflected in Sungrow’s 2025 2025 semi-annual report, where energy storage revenue surpassed power electronic conversion equipment for the first time. Revenue from power electronic conversion equipment reached CNY 15.327 billion (up 17.06% year-on-year), accounting for 35.21% of total revenue, while energy storage systems generated CNY 17.803 billion (up 127.78% year-on-year), contributing 40.89%.
As of December 2025, Sungrow’s cumulative energy storage system shipments exceeded 93 GWh, according to the filing.
Hong Kong continues to attract Chinese battery and energy storage companies, supported by strong investor demand. Listings in the city – typically denominated in offshore currencies such as HKD or USD – enable firms to raise capital for overseas expansion, M&A, and manufacturing capacity build-out, while bypassing onshore foreign exchange constraints.
In addition to CATL, Shuandeng Group and Sigenergy, which are already listed on the Hong Kong Stock Exchange, other major energy storage players, including Sunwoda and Hithium, are also pursuing IPOs as part of the sector’s ongoing internationalisation.
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