CATL completed a roughly $5 billion share sale in Hong Kong on Tuesday. Meanwhile, Chinese inverter and battery maker Sungrow is making a second attempt at an IPO after its initial bid, launched in October 2025, expired.
By ESS news
The world’s largest battery maker CATL completed a stock placement in Hong Kong on Tuesday, raising about $5 billion in a deal that marks the stock market’s largest stock offering so far this year.
CATL sold 62.385 million new foreign capital shares (H shares) for HK$628.20 each, raising HK$39.2 billion ($5 billion), according to a filing with the Hong Kong Stock Exchange. The placement price was set at the bottom of the market range and represented a discount of approximately 7% to Monday’s 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 operations. A portion of the funds will also be allocated to working capital and general corporate purposes.
The fundraising takes place in the context of strong recent performance. CATL reported robust results for the first quarter of 2025with net profit rising 32.85% year-on-year to CNY13.96 billion ($1.9 billion), while total battery sales reached 126 GWh, up 33% from a year earlier.
Last May 2025, CATL talked about $4.6 billion on Hong Kong listing, world’s largest in 2025, and said most of the proceeds would fund a battery factory in Hungary.
Meanwhile, Sungrow Power Supply has reapplied for listing with the 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 an increase of HK$987 million. Founded in 1997, Sungrow listed on the Shenzhen Stock Exchange in November 2011 and is currently valued at approximately $38 billion.
In its April 24 filing for the issuance and listing of H shares, Sungrow reported steady financial growth. From 2023 to 2025, it achieved an operating revenue of CNY 72.159 billion, CNY 77.704 billion and CNY 88.914 billion, and a net profit of CNY 9.609 billion, CNY 11.264 billion and CNY 13.533 billion, respectively.
Foreign revenues rose to CNY53.99 billion in 2025, up 49.5% year-on-year, with the share of total revenues rising to 60.7% from 46.7% in 2024, crossing the 50% threshold for the first time.
Proceeds from the Hong Kong IPO are expected to be used for overseas energy storage manufacturing 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 capacity utilization of the main photovoltaic inverter activities. According to the prospectus, capacity utilization peaked at 212.6% in 2023, fell to 163.1% in 2024 and fell further to 85.0% in 2025, indicating a significant reduction in production intensity.
The business move was also reflected in Sungrow’s 2025 Semi-annual report 2025where energy storage revenues surpassed electrical power conversion equipment for the first time. Revenue from power electronics 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%.
According to the filing, Sungrow’s cumulative energy storage system deliveries exceeded 93 GWh as of December 2025.
Hong Kong continues to attract Chinese battery and energy storage companies, supported by strong investor demand. Listings in the city – usually denominated in foreign currencies such as HKD or USD – allow companies to raise capital for overseas expansion, mergers and acquisitions and expansion of production capacity, while circumventing foreign exchange restrictions on land.
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 initial public offerings as part of the sector’s continued internationalization.
This content is copyrighted and may not be reused. If you would like to collaborate with us and reuse some of our content, please contact: editors@pv-magazine.com.
