Chinese EV battery maker Farasis seeks to raise $479m in STAR board listing

Chinese electric vehicle battery maker Farasis Energy has received regulatory approval to raise around 3.4 billion yuan ($479 million) in an initial public offering on China’s Nasdaq-like STAR board, according to a statement by the Shanghai Stock Exchange.

Farasis, which said last year that it planned a share market listing, is expected to be valued at around 30 billion yuan after the IPO, said two sources with direct knowledge of the matter.

Farasis, whose main products are nickel-cobalt-manganese batteries for electric vehicles, aimed to list in the second quarter this year, they added, declining to be named as they were not authorised to speak to media.

Farasis did not immediately respond to a request for comment.

The battery maker is raising the most funds of any company that has received approval so far this year to proceed with a STAR board listing.

The planned listing comes as electric vehicle battery makers in China, the world’s biggest auto market, are expanding manufacturing capacities, with automakers from Tesla to Volkswagen planning to roll out more electric models.

China’s booming electric vehicle sales were cut short last year by a roll-back in government subsidies. However, China on Tuesday reversed the move and will extend subsidies for new energy vehicle (NEV) purchases and extend an NEV purchase tax exemption for two years.

Eleven-year-old Farasis Energy counts China’s BAIC BluePark and Great Wall as major customers. It is also building a factory in Germany to help Daimler’s Mercedes-Benz ramp up electric vehicle production.

The company has plants in China’s eastern cities of Ganzhou and Zhenjiang.

Other major battery makers in China include Fujian-based CATL and Buffett-backed BYD. South Korean LG Chem and SK Innovation are also expanding their capacity as restrictions on the use of foreign battery makers’ products have eased.

In a filing to the Shanghai stock exchange, auditor Ernst&Young said Farasis Energy’s business operations in the first quarter might be affected by the coronavirus epidemic.

Overall car sales in the country plunged about 79% in February, as customers stayed away from auto showrooms amid social-distancing restrictions.

Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.