- Terms, timing and size are not final, sources say
- Convertible bonds remain one funding option, source says
- Shares are up 150% since Hong Kong listing
April 14 (Reuters) - China's Contemporary Amperex Technology is considering a potential Hong Kong share sale that could raise around $5 billion, two sources with knowledge of the matter said, as the world's biggest electric vehicle battery maker weighs fresh funding after a sharp run-up in its stock.
CATL is in talks with banks about the possible deal, the sources said, adding the timing, size and final structure have not been decided. Convertible bonds are among the options under consideration, one of the sources said.
The sources declined to be named as the discussions are private.
Bloomberg and IFR reported the funding deliberations on Monday. CATL did not respond to Reuters requests for comment.
CATL's Hong Kong-listed shares have surged 150% from their HK$263 ($33.57) listing price in May 2025 and were down about 3.3% on Tuesday.
Its Shenzhen-listed shares are up about 17.3% year-to-date, valuing the company at about $291 billion, according to LSEG data.
CATL raised about $4.6 billion in its Hong Kong debut in May 2025, the world's biggest listing that year. Most of the proceeds were earmarked to build a factory in Hungary, part of its plan to make batteries in Europe for automakers such as BMW, Stellantis and Volkswagen.
In March, CATL, which also supplies major EV brands including Tesla, Xiaomi and Nio, reported fourth-quarter and 2025 net profit that beat estimates.
The fundraising talks come as China's EV sector remains fiercely competitive. A Reuters analysis this month found that the country's crowded EV market has made sustained profitability difficult, even for leading players.
($1 = 7.8345 Hong Kong dollars)
Reporting by Dagmarah Mackos and Yantoultra Ngui. Editing by David Goodman and Mark Potter
Source: Reuters