CATL Raised USD 6.7 Billion in a Bear Market
Easy access to capital is not the only advantage of leading Chinese manufacturers
Worth mentioning this week is that CATL just raised RMB 45 billion (USD 6.7 billion) in a private placement of A-shares. The deal priced CATL (300750.SZ) at RMB 410 per share, a 27% discount to the June 24 closing price. CATL is the world’s largest producer of power batteries, used mainly in electric vehicles. Its customers include the leading auto makers globally: BMW, Daimler, Honda, Toyota and Tesla etc.
At first glance, there are at least two things extraordinary about the CATL placement.
USD 6.7 billion is not a small sum of money. The company is raising billions in a sagging Chinese stock market. (Just imagine how much more the company could raise in a bull market, and at what valuation).
CATL has raised nearly USD 10 billion through equity financing since its IPO in 2018.
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