【New Stock Listing】Zhongwei New Materials (2579) has a subscription entry fee of HKD 7,637, a supplier of battery materials for Tesla, with 11 basis points invested
Zhongwei New Materials is offering shares for subscription from today until November 12, planning to globally issue approximately 104 million H shares, with an entry fee of HKD 7,636.24, and is expected to be listed on November 17. The company has introduced 11 cornerstone investors, collectively subscribing for approximately USD 214 million. The net fundraising amount is expected to reach HKD 3.628 billion, mainly for expanding production, researching and developing new energy battery materials, and working capital. Zhongwei New Materials is a supplier of battery raw materials for Tesla, with a net profit of RMB 735 million in the first half of this year, a year-on-year decrease of 14.83%
According to a report from Economic Information Daily on the 7th, Tesla's battery material supplier Zhongwei New Materials (02579) (Shenzhen: 300919) will begin its IPO today until November 12 (Wednesday), planning to globally offer approximately 104 million H shares, of which about 10% will be publicly offered in Hong Kong, with the remainder for international offering. The price per share is set between HKD 34 and HKD 37.8, with a maximum fundraising amount of HKD 3.94 billion. Each lot consists of 200 shares, with an entry fee of HKD 7,636.24. The company is expected to be listed on November 17 (Monday), with Morgan Stanley and Huatai International as joint sponsors.
The company has introduced 11 cornerstone investors, including partnerships with Guizhou Province New Industrialization Development Equity Investment Fund (Limited Partnership), Baoda Investment, Zhongchuang Innovation Technology Group, Dongsheng Xianxing Technology, NR 11 SP under North Rock Fund, Shanghai Gao Yi, Hunan Xingxiang Emerging Industry Mother Fund, Lens Technology Hong Kong, and Xinwangda Finance, collectively subscribing approximately USD 214 million (about HKD 1.659 billion). Based on the median offer price of HKD 35.9 per share, the total number of shares that can be subscribed will be 46.1976 million shares, assuming the over-allotment option is not exercised, accounting for about 4.4% of the total issued share capital.
Based on the median offer price, Zhongwei New Materials estimates that the net fundraising amount will reach HKD 3.628 billion, of which about 50% will be used to expand production and supply chain capacity; about 40% will be used for research and development of new energy battery materials and advancing digitalization; and about 10% will be used for working capital and other general corporate purposes.
Zhongwei New Materials, which is already listed in Shenzhen, is a battery material supplier for Tesla and CATL (03750), primarily engaged in the research, production, and sales of new energy battery materials centered on positive electrode active material precursors (pCAM), as well as new energy metal products. In the first half of this year, the company recorded a net profit of RMB 735 million, a year-on-year decrease of approximately 14.83%. (eh)
