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在线翻译:
szdaily -> Markets -> 
CATL soars 44% in its trading debut
    2018-06-12  08:53    Shenzhen Daily

SHARES of Contemporary Amperex Technology Ltd. (CATL), the world’s biggest maker of electric vehicle (EV) batteries, yesterday jumped on their trading debut as investors bet on rising demand for new energy cars worldwide.

Shares in CATL soared 44 percent on their debut in Shenzhen, the maximum allowed for newly listed stocks on their first day of trade, valuing the company at about US$12.3 billion.

CATL, based in Ningde, southeastern China’s Fujian Province, sold 217 million new shares, or 10 percent of its enlarged capital, at an initial price of 25.14 yuan (US$3.92) each.

The battery giant is raising funds to finance a rapid expansion as China aggressively promotes electric vehicles as a cleaner alternative to polluting fossil fuels.

Analysts with Samsung Securities said earlier this month that the initial public offering (IPO) was expected to cover only half of the costs of its planned 24 gigawatt-hour capacity increase.

CATL already supplies major domestic carmakers like SAIC Motor and Geely and has agreements with global automakers like BMW and Volkswagen.

Investors are confident that CATL can fend off rivals including Panasonic Corp. and continue to win orders as automakers move toward electric vehicles.

CATL had reduced the size of its IPO by more than half compared with its original ambitions because of declining margins and a cap imposed by authorities on price-earnings ratios in IPOs.

CATL, which also counts carmakers Nissan Motor Co. and Hyundai Motor Co. as clients, last year overtook Panasonic as the world’s largest supplier of electric vehicle batteries by sales, thanks to increasing domestic demand.

New energy vehicle sales in China more than doubled to 225,000 units in the first four months of 2018, according to industry ministry data. Lithium battery production in China rose 31 percent last year to hit 1.18 billion units.

However, experts have warned of the risks of overcapacity, with 102 firms now producing as many as 335 types of electric, hybrid and fuel cell vehicles throughout the country.

Still, CATL’s gross margin shrank 9.5 percentage points last year to 35 percent. The company lowered battery prices to gain market share after the government reduced electric vehicle subsidies, weighing on profitability, founder Zeng Yuqun said last month. (SD-Agencies)

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