Chinese EV -Battery giant Catl wants to pick up $ 4 billion in Hong Kong IPO
The Chinese EV battery giant Catl wants to collect $ 4 billion in his list of Hong Kong planned for May 20, said a statement submitted to the stock exchange on Monday, which is expected to be the largest IPO so far in the city this year.
Catl is a world leader in the sector and produces more than a third of all worldwide batteries for electric vehicles (EV), working with major brands such as Tesla, Mercedes-Benz, BMW and Volkswagen.
The company is already mentioned in Shenzhen, and the plan for a secondary list in Hong Kong was announced in an application at the fair in December.
According to a prospectus that was submitted on Monday, CATL offers around 117.9 million units that are priced to HK $ 263 per share ($ 33.8) for the total expected revenues of HK $ 31.01 billion.
The list has been set to take place next Tuesday (May 20).
Cornerstone investors, including Sinopec and Kuwait Investment Authority, agreed to buy shares worth HK $ 2.62 billion, according to the prospectus.
Founded in 2011 in the eastern Chinese city of Ningde, Contemporary Amperex Technology Co., Limited (CATL) was initially powered to success through rapid growth on the domestic market.
But the world’s largest EV market has recently started showing signs of marking the sale in the midst of a broader delay in consumption.
The trends have fueled a fierce price war in the extensive EV sector of China, which puts smaller companies under enormous pressure to compete and remain financially viable.
But Catl continues to post solid performance, with its net profit 32.9 percent jumps in the first quarter.
Funds collected from a secondary list can be used to speed up CATL’s overseas expansion, especially in Europe.
The battery giant builds his second factory on the continent in Hungary after launching his first in Germany in January 2023.
In December Catl announced that it would work with Autogigant Stellantis at a factory of $ 4.3 billion to make EV batteries in Spain, planned production to start by the end of 2026.
– ‘Militively linked company’ –
Earlier analysts said that Catl’s float could be a blockbuster initial public offer that could increase the fortunes of Hong Kong as a frame hub.
The Hong Kong fair is enthusiastic about the return of great Chinese offers in the hope of getting his crown back as the world’s best IPO location.
The Chinese Finance Hub saw a steady decrease in the new offer, because from 2020 Beijing’s regulatory performance led some Chinese mega companions to put their plans on hold.
In a list issued by the US Department of Defense in January, Catl was designated as a “Chinese military company”.
The Select Committee for the Chinese Communist Party of the United States emphasized this recording in letters to two American banks in April and urged them to withdraw from the IPO deal with the “Chinese militarily linked company”.
But the two American banks – JPMorgan and Bank of America – are still at the deal.
Beijing has denounced the list as “oppression”, while Catl denied “in military -related activities”.
According to Bloomberg, CATL is planning to make the deal as a “reg S” offer that does not allow us to sell our onshore investors, which limits the exposure of the company to legal risks in the United States.
JUG-TWA/DHC
