(Yicai Global) July 20 -- China’s largest electric vehicle battery maker Contemporary Amperex Technology completed CNY19.7 billion financing (USD2.8 billion) from nine investors who made its final cut, the firm said in its latest statement.

Hillhouse Capital Group invested CNY10 billion, Honda Motor China Investment CNY3.7 billion, and seven companies including UBS and J.P. Morgan Securities the remaining CNY6 billion, Ningde, Fujian province-based CATL announced on July 17.

The company’s private placement was priced at CNY161 (USD23) per share, equal to 98.28 percent of the average price of CNY163.81 in the 20 trading days before the investment subscription date, and 124.16 percent of the minimum offering price of CNY129.67 per share.

The funding, which is over three times the amount it raised in its 2018 listing, will go to lift production and fuel research and development to hone the company's competitiveness against overseas rivals in an ever-more cut-throat terrain.

This CNY161 starting price is not low. CATL’s stock [SHE:300750] was up 3.53 percent at mid-morning at CNY202.60. It had risen from CNY69.11 per share on Nov. 1 last year to CNY195.7 at market close on July 17.

The final issue price is higher than the reserve price mainly due to investors’ huge demand. This time a total of 39 institutions or individuals participated in the investment subscription, but only nine were selected.

Editor: Ben Armour