Contemporary Amperex Technology Co. Ltd.’s upcoming jumbo listing, which could raise more than $5 billion, is the type of deal that can inject a much-needed adrenaline shot into a sputtering market like Hong Kong’s. But it’s fast becoming a headache for Wall Street banks.
That’s because the electric-car battery giant, commonly known as CATL, recently offered a mere 0.2% base underwriting fee to bankers, plus possible incentives, according to people familiar with the matter, who asked not to be identified because they weren’t authorized to speak publicly on the deal. That’s less than what others have paid recently for similar big listings, and a far cry from the 1.2% that data provider LSEG said Chinese issuers typically paid for certain types of share sales such as second listings in the past decade.
