Published on November 19th, 2017 | by James Ayre0
EV Battery Giant CATL Planning $2 Billion IPO To Fund Expansion, Including New 24 GWh Manufacturing Plant
November 19th, 2017 by James Ayre
The China-based electric vehicle battery manufacturer Contemporary Amperex Technology Co Ltd (CATL) is now planning a $2 billion IPO to be completed by the end of June 2018, with the funds to be used to accelerate the company’s expansion plans.
Amongst the plans for the IPO funds, the company will reportedly be building two new electric vehicle battery manufacturing plants — including one that will possess a production capacity of 24 gigawatt-hours (GWh) of battery cells.
If completed, the IPO in Shenzhen will represent the largest by a non-financial private firm in China on the mainland — and will boost the value of the firm to some $20 billion.
“CATL said in a prospectus that it planned to raise 13.1 billion yuan ($1.97 billion) through an initial public offering of 217 million new shares, or about 10% of its enlarged capital, indicating a valuation of around $20 billion,” Reuters reports.
“CATL held 10.5% of the global electric-vehicle (EV) battery market in 2016, behind only BYD and Panasonic, according to BNP Paribas. The firm’s move to list on China’s NASDAQ-style ChiNext board would also give investors a potential way into a company pegged as one of the battery champions in the world’s largest market for electric cars.
“In the prospectus, first posted by China’s securities regulator late on Friday, CATL said it had brought in 14.9 billion yuan in sales last year, up almost threefold versus 2015. Net profits were up sharply also to 3.1 billion yuan.”
The plan is for the newly raised funds to help CATL achieve its target of possessing 50 GWh of lithium-ion automotive battery production output by 2020 — and also to help in a possible further expansion into international markets.
The company is also reportedly now looking into further upstream investments into the mining and production of the raw materials used in automotive lithium-ion batteries — such as cobalt, lithium, etc.