, Columnist
China’s Battery Ace Can Run on Reduced Power
A slower and steadier pace of expansion may be no bad thing for CATL.
CATL’s pared-back IPO isn’t bad news for China’s electric-car market.
Photographer: Zhang Peng/LightRocket/Getty Images
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China’s electric-car battery champion has had its wings clipped, or so it seems. Investors should breathe a sigh of relief.
Contemporary Amperex Technology Ltd., which has been gearing up for an initial public offering for the past year, is now expected to raise a net 5.46 billion yuan ($853 million), less than half its target as of March. The reduction is partly the result of regulators capping CATL’s valuation, as they have for other companies selling shares in China’s local-currency stock market.