Published on April 7th, 2018 | by James Ayre0
Battery Giant CATL Given Go-Ahead By China’s Authorities For $2 Billion IPO
April 7th, 2018 by James Ayre
The China-based battery manufacturing giant Contemporary Amperex Technology Co Ltd (CATL) has been given the go-ahead by that country’s securities regulator to pursue the previously unveiled plan for an initial public offering (IPO) of stock totaling 13.1 billion yuan (~$1.97 billion).
The country’s official news agency Xinhua revealed that the plan was approved at a meeting of the China Securities Regulatory Commission (CSRC) on Wednesday, with current plans calling for the funds raised by the stock IPO to be used for the rapid expansion of manufacturing capacity levels.
The idea, as would be expected, is to take advantage of rapidly growing demand for plug-in electric vehicles in China, and elsewhere as well.
The coverage from Reuters provides more info and some context as well: “The approval comes amid a CSRC push to encourage new listings by ‘unicorn companies,’ or startups valued at more than $1 billion, said Xinhua. The Ningde-based CATL is a supplier to domestic carmakers like SAIC Motor Corp Ltd and Geely Automobile Holdings Ltd and has agreements with international automakers like BMW and Volkswagen.
“China, struggling with alarming pollution levels in major cities, is aggressively pushing plug-in vehicles and has poured in tens of billions of yuan in investment, research funding and subsidies, drawing many new automakers to launch projects. Strict quotas for electric and hybrid cars are set to come into effect next year in China, home to the world’s biggest auto market, in line with Beijing’s efforts to make the country a world leader in new-energy vehicles and related technologies.”
With that in mind, it’s probably worth it for those interested in learning more about the situation to read this: “BYD’s Revenge In China — February Electric Car Sales Report.”