On April 28, CATL (03750), the world's largest electric vehicle battery manufacturer, announced a share placement to raise capital. Media reports cited sources indicating that more than 150 institutions took part in the subscription for the H-share placement. Participants included Norway's sovereign wealth fund Norges Bank Investment Management (NBIM), Hillhouse Investment, hedge funds, other sovereign wealth funds, and existing shareholders.
Other institutions involved in the placement reportedly included hedge fund firm Millennium Management and US quantitative trading giant Jane Street Group. The report noted that CATL conducted this placement less than a year after its listing in Hong Kong, taking advantage of a brief market window during a period of eased tensions in the Middle East.
Bosco Wu, a strategist at Bank of East Asia, commented, "The participation of foreign institutional investors in this placement not only helps broaden CATL's shareholder base but also indicates that foreign capital remains eager to invest in Chinese companies despite the current uncertain geopolitical environment."
According to the announcement, CATL plans to place 62.385 million new H shares at a price of HK$628.20 per share, raising a total of approximately HK$39.19 billion. After deducting related expenses, the net proceeds are expected to be around HK$39.11 billion. The funds will be used for global new energy project construction and zero-carbon business deployment, research and development investment, supplementing daily working capital, and other general corporate purposes, accelerating the implementation of CATL's global zero-carbon strategy and supporting long-term sustainable development.
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