CNGR (02579), a battery materials supplier for Tesla (TSLA.US) and CATL (03750), concluded its IPO subscription period from November 7 to 12. As of late morning on November 12, broker estimates showed margin financing for CNGR reached approximately HK$6.88 billion, oversubscribing its HK$394 million public offering by 16.5 times.
The company plans to issue 100 million H shares at a price range of HK$34 to HK$37.8, aiming to raise up to HK$3.94 billion. Each lot consists of 200 shares, with an entry fee of HK$7,636.2 per lot.
CNGR has not implemented a mandatory clawback mechanism, allocating 10% of shares to the public offering, which may be increased to 15% at the discretion of the overall coordinator. The stock is expected to debut on November 17, with Morgan Stanley and Huatai International serving as joint sponsors.
According to its prospectus, CNGR is a leading new energy materials company specializing in the R&D, production, and sale of precursor cathode active materials (pCAM) and new energy metal products. It has been the global leader in nickel-based and cobalt-based pCAM for lithium-ion batteries since 2020, holding market shares of 20.3% and 28.0% in 2024, respectively. By sales value, CNGR ranked first globally in pCAM products with a 21.8% market share.
The company’s materials are critical for lithium-ion batteries used in EVs, energy storage systems, consumer electronics, and high-power applications such as AI devices, humanoid robots, and low-altitude aircraft. CNGR operates an integrated supply chain spanning mining, smelting, refining, production, and recycling of new energy metals. Its diversified offerings include nickel intermediates, electrolytic nickel, and by-products like cobalt and copper.
In 2024, CNGR ranked sixth globally in nickel production, accounting for 3.7% of the market. Its cornerstone investors include Guizhou New Industrialization Fund, Baoda Investment, CALB (03931), Dongshan Xianxing Technology, Guotai Junan Securities Investment (Hong Kong), North Rock’s NR 1 SP, Shanghai Gaoyi, Huatai Capital Investment, Hunan Xingxiang Emerging Industry Fund, Lens Technology’s (06613) subsidiary Lens Hong Kong, and Sunwoda Treasury, collectively subscribing to $210 million in shares.