(Yicai) May 20 -- Shares of Contemporary Amperex Technology jumped 16.4 percent on their first day of trading in Hong Kong, after the Chinese battery giant raised HKD35.3 billion (USD4.5 billion) after costs in the biggest public offering so far this year.

The stock [HKG: 3750] ended today at HKD306.20 (USD39.12), giving the Ningde-based firm a market capitalization of HKD1.4 trillion (USD178.8 billion), and pricing the new shares about 7 percent higher than its Shenzhen-listed stock [SHE: 300750], which rose 1.2 percent to close at CNY263 (USD36.43).

CATL issued 135.6 million Hong Kong shares priced at HKD263 (USD33.60) each, raising HKD35.3 billion after deducting the costs of the offering. About 90 percent of the proceeds will go toward the building of phases one and two of its battery plant in Hungary.

The listing marks CATL’s deeper integration into global capital markets and a fresh start for the company in promoting a global zero-carbon economy, Chairman and Chief Executive Zeng Yuqun said at the bell-ringing ceremony. CATL is not only a battery manufacturer but is also a provider of system-level solutions and aspires to become a zero-carbon technology company, he added.

The stock’s strong debut shows that foreign investors recognize CATL’s global capabilities and long-term competitive edge, Mo Xiaocheng, managing director of private equity firm Honreal Fund, told Yicai.

The stock prices of companies with dual listings in the mainland and Hong Kong are usually higher on the mainland. But CATL, and fellow clean energy leader BYD, are exceptions. BYD’s Hong Kong-traded equities [HKG: 1211] rose 2.5 percent today to close at HKD444.60 (USD56.80), while its Shenzhen stock [SHE: 002594] gained 3.1 percent to CNY394.80 (USD54.70).

CATL and BYD’s higher Hong Kong valuations indicate that global investors care more about international expansion, supply chain influence, and steady long-term cash flows, Mo said, adding that these firms have the clear development roadmaps and strong technological barriers that foreign investors look for.

CATL has topped the world rankings for battery shipments for eight straight years, according to South Korean market research firm SNE Research. Its installed battery capacity surged 32 percent to 339.3 gigawatt hours last year from 2023, giving it a 38 percent global market share.

The company’s net profit jumped 33 percent in the first three months of this year from a year ago, while revenue rose 6 percent to CNY84.7 billion (USD11.7 billion), according to its latest earnings report.

Editors: Dou Shicong, Kim Taylor