China’s securities regulator has reportedly approved a planned CNY13.12 billion ($1.98bn) initial public offering by lithium battery giant, Contemporary Amperex Technology (CATL), to expand its automotive battery business.
The China Securities Regulatory Commission (CSRC) gave CATL’s application the green light on 4 April, the state Xinhua News Agencysaid.
According to Xinhua, the approval is in line with CSRC’s aims to encourage new listings by “unicorn companies”— business start-ups valued at more than $1 billion.
CATL, headquartered in east China’s Fujian Province, is a supplier to domestic carmakers such as SAIC and Geely, and has agreements with international brands including BMW and Volkswagen.
The battery maker has said CNY8.92bn raised from the IPO would go to building its Huxi automotive lithium-ion battery production site over the next three years. The remainder would be spent on setting up a battery R&D project.
Huxi, to be based in the Dongqiao economic development zone, in Fujian Province, is expected to boost CATL’s battery manufacturing capacity by 24GWh.
Last month, CATL was reported to be on the lookout for a site in Europe to manufacture lithium-ion batteries for the electric vehicle market.