CATL raises $6.7 billion, report says

HONG KONG — Contemporary Amperex Technology Co., the world’s largest battery maker for electric vehicles, has priced its shares at 410 yuan ($61.07) each in a private placement to raise $6.7 billion, according to two sources with direct knowledge of the matter.

The sources could not be named as the information had not yet been made public.

CATL did not immediately respond to a request for comment outside of normal Chinese business hours.

CATL, which supplies automakers, including Tesla, Volkswagen, BMW and Nio, carried out the private placement during a book build on Wednesday.

It will be the second-largest equity capital markets transaction in the world so far in 2022, based on Refinitiv data.

The Shenzhen-listed stock closed on Wednesday at 465.66 yuan, up 5.4 percent, and the placement price was about a 7 percent discount to its closing price on Tuesday.

The cash will be used to fund expansion of its domestic manufacturing plants and enhancing its research and development, according a term sheet for the deal seen by Reuters.

The fundraising comes amid increasing volatility in global financial markets roiled partly by concerns about China’s economic growth after its persistent lockdowns in line with its zero COVID strategy.

Rising inflation and the prospect of higher interest rates, especially in the United States, has prompted a major sell off in risk assets like equities.

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