CATL looking to gain billions by floating new shares
China’s battery giant CATL is looking to collect billions on the stock market. According to Bloomberg News, the company has kicked off a private placement that could raise about 45 billion yuan ($6.7Bn; €6.4Bn). The fresh capital is to finance expansion and R&D.
According to Bloomberg, CATL has set a floor price of 339.67 yuan for the placement. The final price will be out on Wednesday, the news agency cites people familiar with the matter, who asked not to be identified as the information is private.
The placement includes a greenshoe option that could take the deal size to about $6.87 billion, again citing unidentified people. The exact investments to be made remain unclear, i.e. whether CATL will build out existing facilities or construct new ones. For example in May, CATL said it was reviewing locations for battery plants in the US. According to estimates from China, CATL’s installed production capacity could reach more than 670 GWh by 2025. The company produced cells with a volume of 170.39 GWh in 2021.
CATL is listed in Shenzhen, and shares fell by a slight 2.2% to 443.82 yuan. A similar development could be seen after rumours of BYD supplying Tesla thickened last week. CATL has a market value of about $154 billion, about 147 billion euros.
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