Sunwoda plans to issue GDRs and have them listed on the SIX Swiss Exchange/London Stock Exchange. In March, Gotion High-tech announced a similar plan.
Chinese company Sunwoda Electronic Co Ltd (SHE: 300207) plans to issue shares in Europe, becoming the latest lithium battery maker to do so after Gotion High-tech (SHE: 002074).
Sunwoda plans to issue Global Depository Receipts (GDRs) and have them listed on the SIX Swiss Exchange/London Stock Exchange, the Shenzhen-listed company said in an announcement Tuesday.
These GDRs will use the company's newly issued RMB common A shares as underlying securities, and the face value of each GDR will be determined based on their conversion ratio to the underlying securities, Sunwoda said.
The move is to further broaden financing channels, meet domestic and overseas business development needs and build an international brand and corporate image, the company said.
The funds raised through the GDR issue will be used for the company's global business development and international layout, investment in research and development, as well as to supplement working capital, it said.
Sunwoda plans to issue no more than 171,862,665 additional A shares represented by the GDRs, or no more than 10 percent of its total common share capital before the offering, it said.
These GDRs are not convertible into A shares in China for 120 days from the date of listing, and the GDRs subscribed by the company's controlling shareholders, beneficial owners and companies under their control are not transferable for 36 months from the date of listing, according to the announcement.
Sunwoda described the listing venue of these GDRs as "SIX Swiss Exchange/London Stock Exchange", stating that the exact venue will be determined based on capital market and regulatory developments and the actual situation of the company.
Sunwoda's main business is consumer batteries, but its power battery business has been growing rapidly in recent years.
The company's revenue in 2021 will be RMB 37.4 billion, of which RMB 20.8 billion will be from mobile and digital batteries, accounting for 55.6 percent of total revenue, up 26.77 percent year-on-year.
Its power battery business will have revenue of RMB 2.93 billion in 2021, representing a year-on-year increase of 584.67 percent.
In May, Sunwoda installed 0.54 GWh of power batteries in China, ranking fifth with a 2.88 percent market share, according to data released earlier this month by the China Automotive Battery Innovation Alliance.
Sunwoda launched a plan to spin off its power battery business in late 2021, with its subsidiary Sunwoda Electric Vehicle Battery Co Ltd (Sunwoda EVB) to be listed as a separate entity, local tech media 36kr reported on June 21, citing people familiar with the matter, adding that the unit is expected to file for an IPO in 2023-2024.
Sunwoda EVB is seeking a new round of financing estimated at more than RMB 3 billion ($448 million) and valued at RMB 20 billion, the report said, citing another investment source.
Sunwoda becomes the latest battery maker after Gotion High-tech to announce a GDR financing offering in Europe.
Gotion High-tech said on March 16 that it was planning to issue GDRs abroad and list them on the SIX Swiss Exchange to accelerate its international strategy and meet its overseas business development capital needs.
Sunwoda's shares traded in Shenzhen were down 4.2 percent by the end of morning trading, as China's A-share market saw a broad sell-off.