Chinese EV battery maker CALB raises US$1.26 billion in Hong Kong’s third-largest IPO this year as local investors shun 79 per cent of allocation
- China Aviation Lithium Battery (CALB), the country’s third-largest EV battery maker, priced the shares at the bottom of its marketed range
- The Hong Kong tranche, which was undersubscribed 0.21 times, has been offered to international investors, pulling its share down to 1 per cent of the overall offer
China Aviation Lithium Battery (CALB), the country’s third-largest electric vehicle (EV) battery maker, has raised HK$9.9 billion (US$1.26 billion) from its initial public offering, after pricing the shares at the bottom of the marketed range.
Trading in CALB will begin on Thursday.
The battery manufacturer reported year-on-year sales growth of more than 100 per cent for three consecutive years from 2019 to 2021 amid a boom in battery-powered car sales in China, the world’s largest automotive and EV market.
CALB, which received approval for its IPO on September 8, posted a net profit of 111.5 million yuan (US$15.6 million) in 2021, turning around from a loss of 18.3 million yuan the previous year.
The company was co-founded in 2015 by a unit controlled by Aviation Industry Corp of China, the state-owned conglomerate that makes fighter jets for the military and owns about 10 per cent of CALB.
Unlike Tianqi Lithium, the Chinese lithium ore miner and EV battery maker, which is listed in Shanghai and Hong Kong, this is CALB’s first public listing.
Tianqi Lithium is one of the 15 cornerstone investors, buying HK$768 million worth of shares. EV maker Xpeng Motors and smartphone manufacturer Vivo Mobile Communication are two other cornerstone investors.
Huatai International is the sole sponsor for the deal. The brokerage, along with Citi, Credit Suisse and JPMorgan, is also the joint global coordinator.