Latest news with #AmperexTechnologyCoLtd
The Star
13-05-2025
- Business
- The Star
CATL starts taking investor orders for world's biggest listing this year
Hong Kong: Contemporary Amperex Technology Co Ltd has started taking investor orders for a Hong Kong stock offering that is likely to be the world's biggest listing this year. CATL, as the Chinese electric-vehicle battery giant is known, is seeking to raise as much as HK$41bil or about US$5.3bil, according to its listing document yesterday. That's if the deal is upsized and the greenshoe exercised on top of the base offering of up to HK$31bil. The greenshoe option, also known as an over-allotment option, is a clause in an initial public offering underwriting agreement that allows underwriters to sell more shares than initially planned if demand exceeds expectations. This is typically used to help stabilise the stock price by allowing underwriters to purchase additional shares from the company or the market at the offering price. The primary goal is to provide stability and liquidity for the stock price, especially in the early days of trading. The Fujian-based company is marketing shares at a maximum price of HK$263 each, or 1.4% lower than last Friday's close in Shenzhen but roughly equivalent to last Thursday's. Pricing could be decided soon and the stock is expected to begin trading May 20. The shares rose as much as 3.4% in Shenzhen trading, outperforming the benchmark index. CATL is offering about 118 million shares in the base offering, which could increase to around 136 million if the company upsizes the deal by 15%. With the greenshoe option, the company would be selling nearly 156 million shares. Cornerstone investors, which agree to hold shares from the deal for at least six months, have committed to buy about US$2.6bil worth of stock, according to the prospectus. They include Chinese state-owned oil company Sinopec, the Kuwait Investment Authority and alternative-asset manager Hillhouse Investment. CATL said it was doing the deal in the form of a so-called Regulation S offering, which doesn't allow sales to US onshore investors and exempts the issuer from certain US regulatory filing obligations, confirming an earlier Bloomberg News report. The limitations on certain types of US investors indicates that US-China tensions may be spilling into the new-listings landscape. The company also received a waiver from the Hong Kong exchange on the need to carry out a clawback mechanism, which would have required it to allocate more shares to retail investors if demand were high enough, according to the prospectus. The waiver allows for institutional investors to maintain a larger proportion of shares allocated for the Hong Kong listing. The share offering would more than double proceeds in Hong Kong's market for listings this year, which Bloomberg Intelligence predicts will surge to more than US$22bil. The bonanza's been driven by Chinese companies going ahead with their listing plans in the Asian financial hub despite the turmoil brought on by US President Donald Trump's tariffs, which have caused many deals to be postponed in America and Europe. The deal hasn't come without hurdles. The company was put on a Pentagon blacklist in January based on allegations of CATL's links to the Chinese military – something the company has denied repeatedly. The heat has spread to even some of the banks arranging the deal. In April, a US congressional committee publicly called on JPMorgan Chase & Co and Bank of America Corp to stop working on the listing because of CATL's alleged military links – again, denied by the company. But both American banks stuck with the deal. After the sale, CATL plans to use much of the proceeds for its ongoing international expansion in Europe, especially for a big factory in Hungary to supply top clients like Mercedes-Benz. That may help the company widen its lead in the industry, where it has a a market share of roughly 38%, comfortably ahead of its closest challenger, top electric vehicle maker BYD Co's 17%, according to SNE Research. As for Hong Kong, the deals keep on rolling. Chinese cancer drugmaker Jiangsu Hengrui Pharmaceuticals Co is also gearing up for a big listing this month, people familiar with the matter have said. The Shanghai-listed company plans to issue up to 815 million shares in Hong Kong Besides JPMorgan and Bank of America, joint sponsors of CATL's offering include China International Capital Corp and China Securities International. Goldman Sachs Group Inc, Morgan Stanley and UBS Group AG are also arranging the deal. CATL said it would pay the underwriters a fixed fee of 0.2% of the deal, including shares to be issued if the offering gets upsized and the greenshoe option is exercised. The banks may also receive a 0.6% incentive fee. — Bloomberg
Business Times
21-04-2025
- Automotive
- Business Times
CATL teases five-minute ev charging with longer range than BYD
[SHANGHAI] Contemporary Amperex Technology Co Ltd, the world's biggest producer of batteries for electric vehicles, unveiled the latest versions of its cells, playing up the durability and range of its products as the perceived limits of EVs still stop many consumers from making the switch. CATL teased the latest innovations at its Tech Day on Monday (Apr 21) in Shanghai – a multi-hour event that took place in a converted warehouse on the outskirts of China's financial capital. Hundreds of media, influencers and industry watchers crowded in to hear from CATL chief technology officer Gao Huan and to catch a glimpse on the big screens of billionaire founder and chairman, Robin Zeng. Zeng only took to the stage near the end of the event, to promise it would become an annual occurrence and remind people that CATL has 'never defined itself as a battery manufacturer but a pioneer of the clean energy system.' Even so, one of the main products CATL talked about was an upgraded version of its Shenxing battery, a cell it says can now offer 520 km of range from just five minutes of charging time. BYD, which is primarily an automaker but which also makes its own batteries and semiconductors, recently launched a car system it says can charge a vehicle for 400 km in about the same time. CATL batteries can already be found in a wide range of automakers' EVs. Tesla is one of its top customers and it has a technology licensing agreement with Ford Motor Its hold on the world's market for EV batteries is hard to overstate. CATL commands a share of around 38.2 per cent based on data for the first two months of the year, according to SNE Research. Its nearest competitor BYD is at 16.9 per cent. Also a popular topic at Monday's event, taking place a few days ahead of China's annual premier auto show, were sodium-ion batteries. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up CATL said its sodium-ion cell, called Naxtra, is ready for commercialisation and has been tested under a number of extreme circumstances, including very cold weather and fire. Even after being placed in an ice chamber with a temperature of minus 40 degrees Celsius, Naxtra had zero power degradation, executives said. Naxtra should give a hybrid vehicle around 200 km of range, stretching to 500 km for an EV. Sodium-ion batteries offer several advantages including being more cost effective due to the abundance and lower price of sodium compared to lithium. They also have higher safety and stability, considering sodium is less reactive, reducing the risk of fire hazards. CATL also unveiled a range of dual-power batteries in a variety of chemistries and energy densities that it said offer up to a 1,000 km of range. CATL's innovation and success in car batteries has also given it the ability to push into more ambitious areas, such as electric vertical takeoff and landing craft, or eVTOLs. While a battery for an airborne craft wasn't a topic of Tech Day, CATL has said its eVTOL, powered by one of its electric cells, can fly up to 250 km – the equivalent of New York to Philadelphia, or Brussels to Amsterdam – at speeds of 200 km per hour. CATL reported a 33 per cent jump in first-quarter earnings earlier this month, with net income of 14 billion yuan (S$2.5 billion) versus estimates of 13.8 billion yuan defying a drop in the prices of the cells that power EVs. Its shares are down around 13 per cent since January. BLOOMBERG
