Chinese battery giant CATL rises after $6.7 billion share sale.
Contemporary Amperex Technology Co. Ltd., the largest maker of batteries for electric cars, rose in Shenzhen trading after pricing one of the world’s biggest stock offerings this year.
The Chinese company, known as CATL, sold 109.76 million shares at 410 yuan apiece, raising 45 billion yuan ($6.7 billion) in an A-share private placement, it said in a statement that confirmed an earlier Bloomberg News report.
While the final price represents a 19% discount to the stock’s last close, it was around a 21% premium to the offering’s floor price of 339.67 yuan. The shares rose 3% to 522.20 yuan in early trading Thursday.
The share sale ranks as the second-biggest globally this year, after rival battery maker LG Energy Solution Ltd. raised $10.7 billion in January in South Korea’s biggest ever initial public offering, according to data compiled by Bloomberg.
CATL, based in Ningde in eastern China’s Fujian province, has said it plans to use the proceeds for the production and upgrade of lithium-ion battery manufacturing in four Chinese cities, as well as research and development.
Companies benefiting from the electric vehicle boom have tapped the markets to sell billions worth of share sales in recent months. BYD Co., which makes both EVs and batteries, raised $1.8 billion in a Hong Kong share offering in October.
Highlights:
- CATL sells shares at 410 yuan apiece in private placement
- Firm plans to use proceeds for factory upgrades, R&D
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Chinese Battery Giant CATL Rises After $6.7 Billion Share Sale, June 22, 2022
