Battery Maker Contemporary Amperex Technology Expects to Raise USD1.97 Billion in Its IPO
Li Suwan
Battery Maker Contemporary Amperex Technology Expects to Raise USD1.97 Billion in Its IPO

(Yicai Global) Nov. 13 -- Battery maker Contemporary Amperex Technology Co.'s prospectus for an initial public offering on the Growth Enterprise Market outlines plans for the firm to issue at most 217,243,733 shares, accounting for more than 10 percent of its share capital upon issuance.

The group expects to raise USD1.97 billion (CNY13.12 billion), which it will invest in its lithium power cell production base as well as research and development.

The IPO is set to bring Contemporary Amperex Technology's market value to about CNY130 billion, surpassing power cell producer Guoxuan High-Tech Co.'s [SHE:002074] CNY26.29 billion valuation.

Contemporary Amperex Technology's is one of China's leading battery developers. Collaborations with car companies have helped the group drum up business in recent years.

The enterprise's operating income and net profit recorded compound annual growth rates of 314.31 percent and 642.70 percent, respectively, from 2014 to last year. Power cell system sales accounted for over 87 percent of the company's main business revenue.

It sold 2.19 gigawatt hours and 6.80 gigawatt hours of power cell systems in 2015 and last year, respectively, putting it among the top three battery firms for two years in a row. It was still behind Chinese electric vehicle and battery maker BYD Co. [SHE:002594].

Contemporary Amperex Technology's domestic power cell market share reached 20.98 percent in the first half of this year, outstepping BYD's 17.35 percent, RealLi Research data show.

Contemporary Amperex Technology's major customers are domestic and foreign automobile groups such as Bayerische Motoren Werke AG and Volkswagen. It cooperates with emerging auto enterprises including NIO.

Through its wholly-owned subsidiary, SAIC Motor Group Co. set up a battery joint venture with Contemporary Amperex Technology in May. Dongfeng Motor Corp., Changan Automobile Co. [SHE:000625] have invested in Contemporary Amperex Technology.

The company says it ranks third globally in annual battery production.

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Keywords: MSCI , Power Cell , Lithium Cell , IPO