CATL Seeks to Raise USD2.8 Billion via Secondary Offering to Boost Output
Contemporary Amperex Technology (CATL), the world’s largest new energy vehicle battery maker, will raise CNY20 billion (USD2.8 billion) via secondary share offering to expand the capacity of its three factories, as well as build a new CNY10 billion one.
The newly issued shares on the Shenzhen Stock Exchange will be sold via private placement to replenish working capital and to boost output in eastern, southeastern, and southwestern China, the Ningde-headquartered firm said in a statement yesterday, without providing details about the timing of issuance.
The Chinese company, which makes up over half of China’s NEV battery manufacturing market share, has been forming more global partnerships in the past year. Tesla said last month that the US carmaker will join CATL’s clients, a group that already includes BMW and Daimler.
CATL will construct a new 87-hectare battery plant in its home town, expecting it to be ready in two years, it said, without disclosing output details.
The firm will spend CNY4.6 billion (USD653.2 million) to expand the annual capacity of its existing Ningde factory to around 16 gigawatt-hours. It will also need CNY7.4 billion to reach about 24 GWh in its Jiangsu province plant. In Sichuan province, the company will use CNY4 billion to log 12GWh in two years.
CATL’s share price rose modestly at 0.61 percent to CNY153.80 (USD21.84) this afternoon, following diluted value expectations.
Source: Yicai Global