CATL IPOs on the Shenzhen Stock Exchange

On June 10, 2018, Contemporary Amperex Technology Co. Ltd. (“CATL”) completed its’ initial public offering of shares (“IPO”) on the Shenzhen Stock Exchange (300750.SZ). CATL’s approximately US$850 million IPO offering, at the time, the largest-ever fundraising on the Shenzhen Stock Exchange's Growth Enterprise Market, sold 217 million new shares, or 10 percent of its’ enlarged capital, at an initial price of 25.14 yuan ($3.92) each. On the close of its’ first day of trading, CATL had gained 44% and ended the day with a market capitalization of approximately US$12.3 billion. The IPO made CATL the biggest company by market capitalization on China’s Nasdaq-style ChiNext list. CATL is headquartered in Ningde, Fujian, China and is the world’s largest provider of batteries for electric vehicles (“EVs”) and is a supplier of lithium-ion batteries for consumer electronics, including Apple’s iPhone. CATL’s EV customers include Volkswagen AG, Nissan Motor Co., Hyundai Motor Co. and BMW AG. CATL will use the IPO proceeds to help finance a new 24 gigawatt-hour factory in Ningde and to develop more-advanced battery technologies. Fasken was Canadian legal counsel to CATL with a team including Michael Boehm, Lei Huang, Janet Howard, Sergio Custodio, KC Miu, Sarah Gingrich, Julia Kennedy, Yufei Luo and Edward Guo.