China’s No 3 EV battery producer seeks to raise US$1.7 billion in Hong Kong IPO, likely to become the year’s third-largest share sale
- The Jiangsu-based company said it would float 265.8 million shares at a price between HK$38 and HK$51 apiece
- A successful fundraising by CALB would give a much-needed boost to Hong Kong’s flagging IPO market
China Aviation Lithium Battery (CALB), the country’s third-largest electric vehicle (EV) battery maker, said it wants to raise as much as HK$13.6 billion (US$1.7 billion) in a Hong Kong initial public offering (IPO) to boost further growth in the accelerating Chinese EV market.
The Jiangsu-based company said it would float 265.8 million shares at a price between HK$38 and HK$51 apiece, which would make it the third-biggest share offering in Hong Kong this year if the deal is priced at the top end.
“We are in an industry that will continue to grow fast,” said Liu Jingyu, chairwoman and chief executive of CALB, in a media briefing on Thursday evening. “We will help our customers to become successful in a win-win scenario.”
CALB, which received approval for its IPO from the Hong Kong stock exchange on September 8, reported year-on-year revenue growth of more than 100 per cent for three consecutive years from 2019 to 2021, buoyed by surging sales of battery-powered vehicles in China, the world’s largest automotive and EV market.
It counts Xpeng, Leapmotor, Geely Auto’s affiliate Viridi E-mobility Tech (Ningbo) and Guangzhou Automobile Group’s EV marque Aion among its customers.