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China Aviation Lithium Battery wins Hong Kong bourse approval for US$2 billion IPO
- If successful, the No. 3 battery maker in China could become the second-largest IPO in Hong Kong this year
- Backed by state-owned aerospace giant Aviation Industry Corp of China, CALB plans to raise funds to ramp up production capacity
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China Aviation Lithium Battery (CALB), the country’s third-largest electric vehicle (EV) battery maker, won approval from the Hong Kong stock exchange’s listing committee on Thursday for a share sale that could raise up to US$2 billion, sources close to the deal said.
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CALB’s Hong Kong share sale would follow the initial public offering (IPO) by lithium ore miner and EV battery maker Tianqi Lithium, which raised US$1.7 billion in July. If successful, CALB could become the second-largest IPO in the city this year, after China Tourism Group Duty Free’s US$2.1 billion deal.
CALB declined to comment whether the application was approved.
Unlike Tianqi Lithium, which is also listed in Shanghai, Jiangsu-based CALB has never been listed elsewhere.
“Demand for EV batteries in China will continue to increase amid surging sales of battery-powered vehicles,” said Ivan Li, a fund manager at Loyal Wealth Management in Shanghai. “As the No. 3 player in the domestic EV battery industry, CALB needs fresh capital to propel growth and increase market share.”
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The company was co-founded in 2015 by a unit controlled by Aviation Industry Corp of China (AVIC), the state-owned conglomerate that makes fighter jets for the military and owns about 10 per cent of CALB. Other shareholders include the local government of Jinta district in northeastern Jiangsu province.
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