What’s new: Sunwoda Electronic Co. Ltd., China’s sixth-largest electric vehicle battery producer, started preparing for an initial public offering of its battery business, joining a parade of battery makers raising funds in the capital market.
Sunwoda Electric Vehicle Battery Co. Ltd. (EVB), the EV battery unit of Shenzhen-based Sunwoda, hired Citic Securities to advise it on a listing application, according to a document published Wednesday by the China Securities Regulatory Commission.
In July, Shenzhen-traded Sunwoda said it planned to spin off Sunwoda EVB and list it separately on the Shenzhen Stock Exchange’s ChiNext startup board. The company hasn’t disclosed its fundraising goal for the IPO.
Sunwoda, which holds a 39.69% stake in the battery unit, will remain the controlling shareholder after the spinoff. Other investors in Sunwoda EVB include Nio Inc., SAIC Motor Co. Ltd. and Huayou Holding.
The context: Several major battery makers have submitted IPO applications this year to tap the capital market for funding, including SVOLT Energy Technology and REPT BATTERO Energy Co. Ltd.
Sunwoda is among the top 10 battery makers globally. During the first nine months this year, the company’s EV battery installations reached 5.83 gigawatts, accounting for 2.28% of the domestic market.
Started as a cellphone battery producer, Sunwoda became a supplier to Apple Inc. in 2011. In 2014, it set up Sunwoda EVB to formally enter the EV battery market.
Sunwoda EVB completed its last funding round in June, raising 1.65 billion yuan ($226 million) from eight investors. The company was valued at 35.56 billion yuan, more than the market cap of the parent.
In 2022, Sunwoda EVB posted 12.92 billion yuan in revenue, with a net loss of 1.09 billion yuan.
Contact reporter Han Wei (weihan@caixin.com) and editor Bob Simison (bob.simison@caixin.com)
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