(Yicai Global) June 8 -- Nuode Investment surged by the exchange-imposed limit after the electrical equipment maker announced a plan to raise CNY2.3 billion (USD360.4 million) via a private placement to fund the expansion of its copper foil production for lithium-ion batteries.
Shenzhen-based Nuode’s shares [SHA:600110] ended today 4.3 percent higher at CNY10.10 (USD1.58), after earlier surging by as much as 10 percent to the highest since early February.
Controlling shareholder Shanghai-based Bangmin Industrial Holding and its two units will buy the company’s new shares, Nuode said in a statement late yesterday. Bangmin's stake will increase to 29.83 percent from 12.75 percent.
Nuode plans to invest CNY1.3 billion in a project in China’s northwestern Qinghai province to build production lines for ultra-thin copper foils with an annual output of 15,000 tons. CNY950 million (USD148.9 million) of the investment will come from the private placement, it said.
Nuode also plans to invest CNY1 billion in Huizhou, a city in southern Guangdong province, to build production lines for ultra-thin copper foils with an annual output of 12,000 tons. CNY800 million of that will come from the third-party allocation.
The remaining proceeds will be used to replenish Nuode's working capital, it said.
Less-than-six-micrometer-thin copper foils can improve battery energy density and increase the range of electric vehicles, Nuode said, adding that it is one of the few firms in China that can produce this kind of product in bulk. Nuode hopes the projects will help consolidate its leading position in the sector and expand its market share.
Nuode's clients include major overseas lithium-ion battery suppliers LG Chem and SK Innovation, as well as top Chinese firms such as Contemporary Amperex Technology, Gotion High-Tech, and electric carmaker BYD.
Editor: Tom Litting