China’s Contemporary Amperex Technology Co (CATL), the world’s largest battery maker, raised $6.7 billion in a private placement, marking the second-largest equity capital markets transaction in the world so far in 2022.
CATL, which supplies batteries to carmakers, including Tesla, Volkswagen, BMW and Nio, carried out the private placement during a book build on Wednesday, according to sources who said the company priced its shares at 410 yuan ($61.07) each.
CATL shares rose 1.7% on Thursday to 457.88 yuan. The Shenzhen-listed stock closed on Wednesday at 465.66 yuan, up 5.4%.
The cash will be used to fund expansion of its domestic battery manufacturing plants and enhancing its research and development, according a term sheet for the deal seen by Reuters.
Jefferies analysts said CATL had been losing market share in recent quarters.
“Second-tier players are expected to see…
Batteries Maker CATL Raises $6.7bn in Private Placement
