CATL (Photo courtesy of CATL)

 

 

[Alpha Biz= Paul Lee] Amid rising global demand for clean energy driven by Middle East tensions, CATL, the world’s largest battery maker, has raised approximately KRW 7 trillion through a major equity offering.

According to Bloomberg and Reuters, CATL launched a $5 billion (about KRW 7.39 trillion) share sale in Hong Kong, marking the largest deal in the market this year. The company priced its new H-shares (62.4 million shares) at HKD 628.2 per share, the lower end of the indicated range. Concerns over share dilution weighed on the stock, which fell about 7% on the day.

CATL, a key supplier to automakers including Tesla, BMW, Volkswagen, Xiaomi, and Nio, plans to use the proceeds to expand global production capacity and strengthen its carbon neutrality strategy.

Bloomberg reported that hedge funds accounted for the bulk of demand, with more than $3 billion worth of shares allocated to them. Short covering by some institutional investors also contributed to the strong demand.

The fundraising reflects robust investor appetite for clean energy assets as the global shift away from fossil fuels accelerates. According to U.K.-based climate think tank Ember, China’s exports of solar products, batteries, and electric vehicles reached record highs in March.

Former China Investment Corporation executive Winston Ma told Reuters that CATL is “riding a perfect wave,” citing rising stock prices, fossil fuel supply shocks, and strong demand in Hong Kong’s equity market for large-cap technology names as ideal conditions for opportunistic capital raising.

 

 

 

 

AlphaBIZ Paul Lee(hoondork1977@alphabiz.co.kr)