Battery Giant CATL is coming out with $2 Billion IPO

The China-based battery manufacturing giant Contemporary Amperex Technology Co Ltd (CATL) has been given the go-ahead by that country’s securities regulator to pursue the previously unveiled plan for an initial public offering (IPO) of stock totaling 13.1 billion yuan (~$1.97 billion).

The funds raised by the stock IPO will be used for the rapid expansion of manufacturing capacity levels.

The approval comes amid a China Securities Regulatory Commission (CSRC) push to encourage new listings by ‘unicorn companies,’ or startups valued at more than $1 billion.

The Ningde-based CATL is a supplier to domestic carmakers like SAIC Motor Corp Ltd and Geely Automobile Holdings Ltd and has agreements with international automakers like BMW and Volkswagen.