China Aviation Lithium Battery (CALB) has debuted on the HKEX, raising HKD10.1 billion (USD1.29 billion), ranking it as the third largest IPO on the city’s bourse by the end of October this year.
The IPO attracted 15 cornerstone investors, who together subscribed for up to USD736 million worth of shares, equal to 56.1% of the IPO stock on offer, or 8.4% of the company’s equity. Among the investors was Tianqi Lithium, one of the world’s top EV battery components suppliers and the second largest IPO in Hong Kong in 2022, raising HKD13.5 billion.
CALB has an 8.2% slice of the domestic power battery cake as of the first quarter of this year, while it ranked sixth among its global peers with a market share of 4.5%, HKEX filings show. The company is also the third largest domestic battery maker.
Jia Yuan Law Offices advised CALB on Hong Kong law and PRC law, while Stephen Peepels, Esq. and V&T Law Firm advised on international sanctions law and PRC intellectual property law, respectively.
Clifford Chance advised on Hong Kong law, JunHe acted as PRC counsel, and Haiwen & Partners acted as PRC intellectual property counsel to sole sponsor Huatai Financial Holdings, and the underwriters, JPMorgan, Citigroup Global Markets, Credit Suisse and Futu Securities International.
Jia Yuan’s team included founding partners Yan Yu and Xu Ying, senior partners Wei Pei and Liu Lei, partners Wang Pengjie and Zhong Yunchang, as well as senior associates Zhang Lu and Li Xunying.
Clifford Chance was led by China co-managing partner Tim Wang, partners Virginia Lee, Liu Fang and Xiang Tianning.
JunHe was led by partners Qu Huiqing and Niu Yuandong, with support from partner Zhou Fang.