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The Chinese electric vehicle battery manufacturer, Catl, said it would raise at least $ 4 billion in what will be the largest sale of Hong Kong shares this year.
The company’s shares will be put in price this week and will begin to quote on May 20, according to a prospect presented before the Hong Kong Stock Exchange on Monday.
The Chinese oil company Sinopec, the Kuwait Authority Sovereign Fund and the Asian Investment Firm Hillhouse Capital are leading a group of more than 20 fundamental investors.
The local Chinese government funds, including the investment of Luoyang Sci-Tech, and Seguros Taikang Life, are also among fundamental investors.
Catl, which already has a list of actions in the Shenzhen Stock Exchange in China, is the world’s largest producer of batteries for EV and energy storage systems.
The secondary list could raise more than $ 5 billion if the demand is strong and a Greenshoe option is exercised, which allows subscribers to sell more shares than planned.
The price of its Hong Kong shares is 1.4 percent below its continental price, as the market closes on Friday. The relatively small discount reflects a greater demand for investors, according to a person close to the agreement. The shares quoted by Shenzhen de Catl jumped almost 3 percent to RMB255 ($ 35.30) in Monday’s opening.
Catl has grown rapidly in the back of the EV EV of China and has embarked on an ambitious global expansion plan, including the construction of battery factories in Europe and license technology for US car manufacturers.
Based in any, Southeast China, the company has also drawn the Washton’s scrutiny about national security fears and there is uncertainty about its long -term position in the US market amid commercial tensions between Beijing and Washington.
Monday’s presentation occurred when the United States said he made a “substantial progress” about two days of commercial conversations with Chinese officials in Geneva, a sign that the two largest economies in the world could calm their commercial war.
However, Catl said in his presentation that the tariff policies of the United States are “in rapid evolution” and that “it cannot predict how tariff policies in several countries can evolve even more”, or potentially affect their business.
The presentation also showed that US investment banks, including JPMorgan and Bank of America, are the main insurers of the list, despite a committee of the United States Congress on April 17 that asks US banks to leave the agreement.
According to a banker close to the agreement, some US investors still weigh their participation in the sale of shares amid concerns about the incorporation of the Pentagon of Catl into their list of companies with affiliations to the Chinese military.
While such designations have little legal impact, it runs the risk of reputation damage and a greater scrutiny of US agencies.
Catl reiterated his denial in Monday’s presentation of the thesis accusations. He said that “he has never dedicated himself to any company or activities related to the army” and said that it is “attractive” with the United States Department of Defense to “address the false designation.”
The company also pointed out that the designation only restricts to work with a small number of US agencies and is not expected to have a broader impact on its business.
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