(Yicai) May 13 -- Contemporary Amperex Technology plans to raise at least HKD31 billion (USD4 billion) from its upcoming secondary listing, making it one of the largest share offerings on the Hong Kong Stock Exchange in recent years.

The Chinese battery giant will issue nearly 117.9 million shares at HKD263 (USD33.74) apiece and start trading under the stock ticker HKG: 3750 on May 20, it said yesterday. 

Cornerstone investors, including China Petrochemical Corporation, Kuwait Investment Authority, Hillhouse Group, UBS Asset Management, Oaktree Capital Management, and Royal Bank of Canada, have so far subscribed to HKD20.4 billion (USD2.6 billion) of the new shares.

About 90 percent of the listing proceeds will be used to finance the first and second phases of the CATL’s production plant in Hungary, so as to further strengthen its local supply capabilities, the Ningde-based company noted.

The company's overseas production capacity includes self-operated factories in Germany and Hungary, a joint venture plant in Spain with European automaker Stellantis, and a battery supply chain project in Indonesia.

CATL's revenue fell for the first time last year since it listed on the Shenzhen Stock Exchange in June 2018, dropping 9.7 percent to CNY362 billion (USD5.3 billion). Net profit climbed 15 percent to CNY50.7 billion (USD7 billion).

CATL has distributed total cash dividends worth nearly CNY60 billion since 2018, with a payout ratio of 50 percent in the past two years. In April, the firm initiated an CNY8 billion (USD1.1 billion) share repurchase plan, and it had already bought back CNY1.6 billion (USD215.5 million) of its own shares as of April 30.

CATL's stock [SHE: 300750] closed 0.7 percent lower at CNY258.77 (USD35.94) today, after gaining 3.5 percent yesterday. The stock is down by 2.7 percent since the end of last year.

Editor: Futura Costaglione