CATL’s IPO and reference to Manono, page-181

tick tock getting closer to end of June . jorc or before IPO listing ?

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MARCH 14, 2018 Print this page China’s electric car battery maker CATL says it has become the largest in the world and is now supplying car companies including BMW and Volkswagen.

The company, which is about to raise $2bn through a listing in Shenzhen, said it had risen from a top-three supplier to number one with 12GWh of sales last year, according to an IPO prospectus.

That puts it ahead of Panasonic, which sold 10GWh last year, it said. Ningde-based CATL also said it is working with Chinese electric-car start-up Nio, whose investors include top tech companies Tencent, JD.com and Baidu. CATL’s rapid growth highlights China’s ambition to dominate the supply chain for electric cars, as global carmakers pledge billions of dollars for EV expansion.

The battery is the most costly component of electric cars, and the technology is critical for EVs to become competitive with their petrol counterparts.

Founded in 2011 as a spin-off of a subsidiary of Japan’s battery maker ATL, CATL plans to boost its production capacity to 50GWh by 2020. That compares with a targeted annual capacity of 36GWh of batteries at Tesla Motor’s Gigafactory in Nevada, which is a joint-venture with Panasonic. CATL sells batteries for cars, buses, and logistics vehicles. Its domestic customers include SAIC Motor, BAIC Group, Geely, Dongfeng Motor, and Changan Auto. CATL reported net income last year of RMB3.97bn compared to RMB 3.02bn a year earlier, it said. Its IPO is being led by China Securities Co, with Goldman Sachs and Industrial Securities co-underwriters.

According to N Ferguson $40 to $50 million investment with off take .
Secured off take of critical lithium supply.
If spending US $50 million you would expect a discount to market price .