Contemporary Amperex Technology (CATL) has secured approval from China’s securities regulator, China Securities Regulatory Commission, for a share sale in Hong Kong.
The move is expected to generate at least $5bn for the Chinese battery manufacturer, marking the city’s largest listing in the past four years, reported Reuters.
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CATL, which received the “Notice on the Registration of Overseas Issuance and Listing”, is currently preparing to issue overseas listed foreign shares (H shares) and to list on the main board of the Hong Kong Stock Exchange (HKEX).
According to the notice, CATL plans to issue up to 220.17 million shares of overseas listed common shares for the HKEX.
The company is required to adhere to reporting regulations through the China Securities Regulatory Commission’s registration management information system for any significant events occurring from the issuance of the registration notice until the end of the overseas issuance and listing process.
Furthermore, within 15 working days after completing the overseas issuance and listing, CATL is required to report the status of the issuance and listing through the same information system.
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By GlobalDataIn the event that CATL does not complete the overseas issuance and listing within 12 months from the date of the filing notice and intends to continue the process, it must update the filing materials.
The company has previously indicated in its HKEX listing application that a portion of the funds raised will be used to construct a €7.3bn ($7.53bn) battery plant in Hungary, reported the news agency.
This latest move comes amid significant fundraising activities by Chinese electric vehicle manufacturers Xiaomi and BYD, who have collectively raised nearly $11bn in the past month through share sales to finance their expansion plans.
