Tesla battery supplier CATL raises US$6.7 billion in Shenzhen stock placement as mainland China’s capital market thrives
- China’s largest electric-vehicle battery maker sold 109.76 million shares at 410 yuan each in a private A-share placement
- The share placement underlines the strength of demand in mainland China’s capital market as appetite for new offerings in Hong Kong and the US wanes
Contemporary Amperex Technology has raised 45 billion yuan (US$6.7 billion) in a stock placement in Shenzhen, demonstrating the strength of demand in the local capital market as appetite for new offerings from Chinese companies in Hong Kong and the US wanes.
The price represents a 19 per cent discount to CATL’s Shenzhen-listed stock, based on its closing price of 507 yuan on Wednesday. It is a 21 per cent premium to the minimum price for the offering, of 339.67 yuan.
China Securities Company was the lead sponsor of the deal.
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“The deal confirmed one of the several advantages Chinese manufacturing leaders enjoy: access to the large and liquid A-share market,” said Wang Qi, chief executive of MegaTrust Investment (Hong Kong). “The ability to raise large sums of money and invest it in [capital expenditure] should help CATL solidify its global position.”