China's CATL To Raise USD 5B By Listing in Switzerland

According to two sources with direct knowledge of the matter, China's CATL, the world's largest battery manufacturer, plans to raise at least $5 billion by listing global depositary receipts in Switzerland as early as May.

According to the sources, if financial market conditions improve before the deal is launched, the deal's size could rise to $8 billion.

CATL, which stands for Contemporary Amperex Technology Co, declined to comment on the deal.

The exact size and timing of the transaction are subject to financial market conditions, according to the sources.

According to Refinitiv data, the $5 billion transaction will easily be the largest GDR by a Chinese company in Switzerland.

GDRs are shares in a foreign company that are traded on a local exchange.

IFR broke the story about the planned listing on Wednesday.

Following the data, nine Chinese companies raised $3.3 billion in Switzerland in 2022.

CATL, which supplies automakers such as Tesla, Volkswagen, BMW, and Nio, raised $6.7 billion in a private placement in June last year, making it one of the world's largest equity capital market transactions for 2022.

According to one of the sources, the company intends to use the proceeds raised in the Swiss GDR to fund its European expansion plans, particularly the development of a plant in Hungary.

CATL announced in August that it would build Europe's largest battery plant, worth 7.3 billion euros ($7.6 billion), in Hungary, as the world's largest electric vehicle battery maker prepares to meet rising demand.