Shares of China’s Contemporary Amperex Technology declined 8.5% Tuesday after the EV battery giant unveiled plans for a roughly $5 billion equity offering in Hong Kong.
CATL, which makes lithium-ion batteries for electric vehicles, is seeking to raise $39.2 billion Hong Kong dollars (about $5 billion) through a private placement, as it accelerates investment in its renewable energy business against the backdrop of a global oil crunch.
CATL shares were last trading at HK$618, compared with tthe placement price of HK$628.20.
Net proceeds are expected to total roughly HK$39.1 billion after fees, with funds earmarked for global new-energy projects, research and development, and general corporate purposes.
The company said the funds will support its push into overseas markets, expand production capacity and strengthen its zero-carbon strategy.
