Tesla, Nio Supplier CATL's Chinese Rival Eyes $2B Hong Kong IPO: Report

Chinese battery maker CALB Co., which is a rival to companies like Contemporary Amperex Technology Co Ltd. (CATL) and Warren Buffett-backed BYD Co. BYDDF BYDDY, has started gauging investor demand for its $2 billion Hong Kong initial public offering, reported Bloomberg.

The Jiangsu-based lithium battery maker will analyze the demand for its shares from Sept. 12 to Sept. 22, as per terms of the deal obtained by Bloomberg.

Also Read: Why Alibaba, Nio Stocks Aren't Trading In Hong Kong Today — And Here's What's On Investors' Radar In Asia

Fund Usage: CALB is looking to raise as much as $2 billion including an over-allotment option, the report said, citing sources. The company will use the funds raised via the IPO for building and expanding production bases, research and development, working capital and general corporate use, according to the terms, it said.

If the IPO succeeds, it could be among the biggest primary share sale in Hong Kong this year, led by China Tourism Group Duty Free Corp., which is looking to raise $2.1 billion, the report stated.

Ranking: CALB Co. is ranked sixth by sales in the global electric-vehicle battery market in July, above South Korea’s Samsung SDI Co., the report said, citing data released by Seoul-based SNE Research last week. CATL, which is a supplier to Tesla Inc. TSLA and NIO Inc. NIO, stands first on the list.