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BEIJING, September 26 (TMTPOST) – China's leading domestic power battery manufacturer CALB said it plans to raise up to HK$15.5 billion ($1.97 billion) in its Hong Kong initial public offering.

The company plans to launch an IPO from last Friday to Wednesday, offering 265 million H shares in Hong Kong, of which 95% will be an international placement and 5% will be a public offering in Hong Kong. The proposed prospectus price range is HK$38 ($4.84)/share to HK$51 ($6.5)/share, with planned fundraising of approximately HK$10.1 billion ($1.29 billion) to HK$13.56 billion ($1.73 billion).

The Company has the right to decide, depending on market conditions, whether to issue further shares after the IPO, up to a maximum of 14% of the original number of shares offered (green shoe mechanism).

The Hong Kong IPO of CALB introduced a total of 15 cornerstone investors with a combined subscription of US$736 million. Based on the mid-price, the subscription ratio accounts for 47.08% of the issue size.

Raw material companies, such as domestic lithium industry leader Tianqi Lithium, new energy metal company Shengtun Mining, and new materials company Zhen Shi Holdings are among the cornerstone investors.

80% of the proceeds will be used for the construction of six battery projects in Chengdu, Wuhan, Hefei, Jiangmen and Meishan, totaling 95 GWh of power battery and energy storage system production lines, 10% for advanced technology research and development, and the remaining 10% will be used as working capital.

CALB ranks third among domestic power battery manufacturers, after CATL and BYD. Data from the China Automotive Power Battery Industry Innovation Alliance shows that in the first eight months of this year, CALB's battery installed capacity was 11.38 GWh, with a market share of 7.02%.

With the rapid development of the industry, CALB hopes to raise capital to provide sufficient financial support for the expansion of production capacity, which the company plans to reach 500 GWh by 2025. According to the prospectus, as of 2021, CALB 's three industrial bases in Changzhou, Luoyang and Xiamen had a combined capacity of 11.9 GWh. The company plans to establish production bases in Chengdu, Wuhan, Hefei and Jiangmen, and expects to expand its effective capacity to 25 GWh and 55 GWh in 2022 and 2023, respectively.

(1 HKD = 0.127391 USD)

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