Chinese battery components maker Shijiazhuang Shangtai Technology held an initial public offering Wednesday on the Shenzhen Stock Exchange, beating expectations as its market capitalization exceeded RMB 12 billion ($1.72 billion) at one point, reports Nikkei Asia. The RMB 40.66 opening price was 20% above the initial offering price of RMB 33.88, showing optimism regarding future growth.
Founded in 2008, Shangtai develops and manufactures anode materials for lithium-ion batteries. The company boasts a 6.8% global share in battery anode materials, ranking sixth. It is growing rapidly with the expansion of the Chinese market for electric vehicles. Net profit is seen at RMB 1.41 billion to RMB 1.47 billion in 2022.
Shangtai’s main customer is Contemporary Amperex Technology (CATL), the world’s largest EV battery company. The two companies have close ties, with CATL accounting for 64% of Shangtai’s sales. CATL also invests in Shangtai through an affiliated company.