Tesla supplier’s rival Gauges demand for $2 billion Hong Kong IPO

Tesla

Chinese battery maker CALB Co. has started gauging investor demand for its $2 billion Hong Kong initial public offering.

The Jiangsu-based lithium battery maker, a competitor for bellwethers Contemporary Amperex Technology Co. and BYD Co., will assess demand for its shares from Sept. 12 to Sept. 22, according to terms of the deal obtained by Bloomberg.

CALB is considering seeking as much as $2 billion including an over-allotment option, people familiar with the matter told Bloomberg on Friday. A successful fund raising could put it among the biggest IPOs in Hong Kong this year, led by China Tourism Group Duty Free Corp., which is seeking a $2.1 billion listing, according to data compiled by Bloomberg.

It will use the IPO proceeds for building and expanding a number of production base, research and development, working capital and general corporate use, according to the terms.

The Chinese company ranked sixth by sales in the global electric-vehicle battery market in July, overtaking South Korea’s Samsung SDI Co., according to data released by Seoul-based SNE Research last week.