Another gigantic IPO is coming.

The global leader in electric battery manufacturing, CATL (full name: Contemporary Amperex Technology Co., Limited), will officially start its IPO from May 12 to May 15, 2025. $CATL(03750.HK)$ The net amount raised in this fundraising is 30.718 billion Hong Kong dollars, which is comparable to the amount raised in September 2024. $MIDEA GROUP(00300.HK)$ Evenly matched. Can be accessed directly by the image below.Ningde Era subscription page.！

In this IPO, CATL intends to globally offer 118 million shares, with a price not exceeding 263 Hong Kong dollars per share, determined based on the closing price of the last trading day on or before the pricing date. Each lot consists of 100 shares, with a minimum investment cost of 26,565.24 Hong Kong dollars, and it is expected to be listed on May 20.

The underwriters include Bofa Securities, China International Capital Corporation, China Securities Co.,Ltd., JPMorgan, and Bank of America Securities. Cornerstone investors subscribed for shares worth approximately 20.37 billion HKD, accounting for 65.7% of the shares offered, including: Kuwait Investment Authority (KIA), Sinopec (Hong Kong), China Pacific Insurance, Taikang Life, and others.

Prior to this, CATL was already listed on the Shenzhen Stock Exchange. $Contemporary Amperex Technology(300750.SZ)$ It is one of the star stocks in the A-share market, with an increase of approximately 65 times since its listing in June 2018 (data as of May 12, 2025), referred to as 'King Ning' by A-share investors.

This trip to Hong Kong is for a secondary listing. Since the announcement of the listing plan in Hong Kong in December 2024, Contemporary Amperex Technology Co., Ltd. has been under widespread attention from investors. According to the company, the funds raised from this Hong Kong listing will focus on overseas capacity expansion, international business development, and supplementing overseas operating capital, providing financial support for the company's long-term internationalization strategy.

What is a secondary listing? What is the difference between a secondary listing and a dual listing?

There are three main ways for mainland companies listed in other markets to list in Hong Kong:

1. After privatization and delisting, apply to list in Hong Kong. For example: China Feihe.

2. Dual primary listing: refers to two capital markets being the primary listing location, and the rules to follow are completely consistent with those required for companies making an initial public offering in Hong Kong. For example: Alibaba, Xiaopeng Motors, Li Auto, Beike, Miniso, etc.

3. Secondary listing: This refers to a company that primarily trades on other exchanges and is regulated by the regulatory authority of the main listing location. Therefore, the review standards are relatively more relaxed, commonly referred to as 'second marriage stocks' (not derogatory). For example: JD.com, Baidu, NetEase, NIO, Weibo, etc.

How to evaluate whether new secondary listed stocks are worth subscribing to? Taking CATL as an example.

The following will take CATL as an example and briefly discuss three aspects: fundamentals, market atmosphere, and discount rate.

Fundamentals: solid industry position, significant increase in Q1 net profit.

Fundamentals are an essential factor that needs to be focused on for every new stock IPO. Companies with excellent fundamentals, especially industry leaders, can attract more capital attention, providing continuous momentum for subsequent stock price increases.

Contemporary Amperex Technology Co., Ltd. was established in 2011, and its main business includes the research, development, production, and sales of power batteries and energy storage batteries. Overseas clients include BMW, Mercedes-Benz, Stellantis, Volkswagen, Ford, Toyota, Hyundai, Honda, Volvo, and other well-known domestic automobile enterprises.

The prospectus shows that CATL has the largest lithium battery production capacity in the world, with one in every three new energy vehicles globally equipped with CATL batteries; its market share for power batteries has ranked first worldwide for eight consecutive years since 2017, and the shipment of energy storage batteries has maintained the first position in the global market for three consecutive years since 2021.

According to the Q1 results announced by Contemporary Amperex Technology Co., Ltd. for 2025, as of the end of March, the company’s revenue was 84.705 billion yuan, a year-on-year increase of 6.18%, which was below market expectations, mainly due to lower-than-expected shipments; net profit was 13.963 billion yuan, a year-on-year increase of 32.85%, slightly higher than market expectations, creating a new historical high for the same period; gross margin increased to 24.4%, a year-on-year increase of 1.15 percentage points; financial expenses decreased by 831.10% year-on-year, mainly due to exchange gains from foreign currency monetary items.

The main business of Contemporary Amperex Technology Co., Ltd. is divided into three major sectors: power battery business, energy storage business, and battery materials and recycling and battery mineral resources; the first two sectors are the main sources of income for Contemporary Amperex Technology Co., Ltd.

In terms of power batteries, the company's shipment volume in the first quarter was 120 GWh, an increase of over 30% year-on-year; although it did not meet market expectations, the company's industry position remains solid with a global market share of 38%, firmly ranked first.

The energy storage business has become a new engine for growth, with revenue accounting for nearly 20% in the first quarter, and it has secured large international contracts such as the 19GWh data center project in the UAE and a 24GWh energy storage system in Australia, with energy storage battery sales increasing by 34.32% year-on-year.

To learn more about the investment highlights of CATL, please click here:New Stock Release | The 'King of Batteries' is here! The lithium battery giant CATL has started its IPO! It plans to be listed on May 20, with a subscription amount of 26,565.24 HKD per lot.
You can also follow topic discussions:Contemporary Amperex Technology has started accepting subscriptions! Will you participate in the new stock draw?

Market atmosphere: The new stock market is hot, and the Hang Seng Index is warming up.

In March of this year, the 'Snow King' $MIXUE GROUP(02097.HK)$ IPO saw over 260,000 participants in the subscription, with the stock price soaring by 43.21% on its first day, pushing the atmosphere of the new stock market in Q1 this year to a peak. In the past three months, among the 11 new stocks listed in the Hong Kong market, 63% saw an increase on their first day, and 45% of the new stocks had a first-day increase of over 30%. Since April, the five new stocks listed have continuously shown hot conditions with increases on their first days.

From mid-March to April, influenced by the United States' 'reciprocal tariffs', the Hang Seng Index nearly erased its gains since the beginning of the year, but with signs of 'breaking the ice' in US-China trade, the index has begun to steadily recover.

On the other hand, among its current partners, Contemporary Amperex Technology Co., Ltd. includes automobile manufacturers from Europe and the United States, raising market concerns that its supply chain may be impacted by tariffs.

In response, the research summary released by Contemporary Amperex Technology Co., Ltd. shows that the US business accounts for a small proportion of the company's shipments. Since last year, the company has proactively made plans according to environmental changes, thus the effect of US tariff policies on the company's performance is relatively small, and the company is actively negotiating solutions with customers.

Analysts also pointed out that if the mainland increases efforts to stimulate domestic demand, it could also bring positive development opportunities for Contemporary Amperex Technology Co., Ltd.

The market cap discount rate between AH: With the rise in A-share prices, there may be a premium or slight discount.

Most Stocks listed in both A and H markets have a certain degree of discount in H Stock market compared to A Stock market.

According to past data, as of May 12, 2025, there are a total of 152 A+H Stocks in the Hong Kong stock market, of which 149 have a discount relative to A Stocks, with most Stocks having a discount rate of over 20%, a median of around 40%, and the highest discount exceeding 70%. (Data source: Futubull)

Why is there a widespread discount situation for AH Stocks? The main reason is that H Stocks have a larger number of institutional investors compared to the A Stock market, are more mature, and are more significantly influenced by overseas funds. Overall, the greater the discount, the more attractive it is to investors from other markets, but companies listed on both AH Stocks with larger Market Caps, stronger fundamentals, and higher foreign recognition tend to have relatively lower discount rates.

So, how is the discount situation for Contemporary Amperex Technology Co., Limited this time? According to the A Stock intraday price on May 12, there is a slight situation. However, the discount rate will dynamically change with stock price fluctuations, and the overall discount space is likely not to exceed 10%. There may also be opportunities for slight premiums during the subscription period.

Referencing the previous case of "Super Giant + A + H Stocks":

Midea Group, which is going public for the second time in Hong Kong in September 2024, has a fundraising scale of up to 31 billion Hong Kong dollars. The pricing discount is about 20%. For a company with large Market Cap and good fundamentals, this is a relatively reasonable discount rate. The closing increase on the first day of listing was 7.85%, and it continued to rise. With the company being included in the Hong Kong Stock Connect, the price differences between AH markets continued to narrow. As of May 9, 2025, the discount has shrunk to around 6%.

For medium to long-term investors, participating in the IPO subscription allows purchasing Stocks at a discounted offering price of 80%, profiting from the gains after the first day of listing.