WASHINGTON (dpa-AFX) - Contemporary Amperex Technology Co. Ltd. (CATL), the world's leading electric vehicle battery manufacturer, is set to limit U.S. participation in its upcoming Hong Kong initial public offering, underscoring growing friction between Washington and Beijing.
The Chinese firm has opted to structure its listing solely under Regulation S, which bars sales to onshore U.S. investors and reduces U.S. regulatory obligations, according to sources familiar with the matter.
While major U.S. institutional investors with offshore accounts can still take part, domestic mutual funds and retail-focused entities will be excluded an unusual step for a deal of this scale. CATL reportedly made the change to reduce legal exposure in the United States, and sources say investor demand remains strong despite the narrower pool of buyers.
The IPO, expected to raise at least $4 billion and possibly up to $5.3 billion if oversubscribed-would mark the largest global listing of the year. It could more than double total proceeds raised through Hong Kong IPOs in 2025, which Bloomberg Intelligence projects will reach $22 billion, driven largely by Chinese companies turning to Asian markets amid Western volatility.
CATL has already been caught in the crosshairs of geopolitical tension. In January, the Pentagon added the company to a blacklist over alleged military ties claims CATL denies, insisting it has no involvement in defense-related activities. A U.S. congressional committee recently urged Bank of America and JPMorgan Chase, the lead U.S. banks on the deal, to step back. Both continue to advise on the listing.
CATL may begin taking investor orders as soon as Monday, signaling its confidence in the deal despite regulatory headwinds and diplomatic strain.
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