Chinese battery supplier SVOLT intends to bag 15 billion yuan through IPO

Shanghai (Gasgoo)- SVOLT Energy Technology Co., Ltd. ("SVOLT"), the battery maker carved out of Great Wall Motor (“GWM”), filed a draft prospectus last week for its initial public offering (IPO) and listing on the Science and Technology Innovation Board (the STAR Market) of the Shanghai Stock Exchange.

According to the draft papers, the company intends to raise 15 billion yuan ($2.095 billion) from the IPO, which is expected to lift SVOLT’s market valuation to 60 billion yuan ($8.383 billion).

Photo credit: SVOLT

The proceeds will be used to construct the company's power battery bases in Changzhou, Huzhou and Suining, build the R&D center in Wuxi, develop the projects of high-energy-density ternary-lithium batteries and battery system, the "second-generation" cobalt-free cathode materials, cobalt-free batteries and battery systems, "Short Blade" batteries and battery systems, and new-type batteries, as well as supplement working capital.

Headquartered in Changzhou city, Jiangsu province, SVOLT focuses on the R&D, production, and sales of new energy vehicle (NEV) power batteries and energy storage battery systems. It has a product lineup including such main products as cells, battery modules, battery packs and energy storage battery systems, and also offer integral solutions of power batteries and energy storage products based on clients' demands.

According to the draft prospectus, SVOLT recorded a full-year revenue of 929.187 million ($129.771 million), 1.736 billion (242.52 million), and 4.474 billion yuan ($624.8 million) in 2019, 2020, and 2021, respectively, representing a continuous year-on-year upward movement. For the first half of 2022, the company saw its semi-annual revenue reach around 3.738 billion yuan  ($522.032 million).

Nevertheless, SVOLT failed to obtain positive net profit attributable to shareholders annually in 2019-2021, and the first half of 2022.

SVOLT reported an annual R&D expense of 724.062 million yuan ($101.123 million) for the year of 2021, indicating a 90.43% growth year-by-year. For the first six months of this year, the company’s R&D expense amounted to 571.846 million yuan ($79.865 million).