A number of global head battery companies will land in the capital market this year.

2022 will be a key year for power battery companies to land intensively in the capital market, including LG New Energy, Honeycomb Energy, China New Airlines (formerly AVIC Lithium) and other global head battery companies are expected to land in the capital market.

In seven days, LG New Energy will enter the South Korean capital market for the initial public offering of (IPO). In view of the promising market prospects for power batteries and electric vehicles, LG New Energy shares have been subscribed for as much as 114 trillion won, or about US $95.62 billion.

This not only breaks the previous record of 81 trillion won for IPO in the South Korean market set by battery material manufacturer SKIE Technology (SKIET), but after its successful listing, it is expected to become the third largest company in South Korea by market capitalization after Samsung Electronics and SK Hynix.

It is reported that the LG New Energy offering will raise US $10.7 billion (about 68 billion yuan), which will make it the largest IPO, in South Korea and the second largest IPO in the world in nearly a year after the US electric car manufacturer Rivian.

The enthusiasm for LG new energy subscription is driven by the rapid development of electric vehicles around the world, the demand for power batteries is "rising all boats rise".

In the US stock market, Tesla, Rivian and other new car-building forces have a high market capitalization, and surpass a number of traditional international mainstream car companies, ranking in the forefront of the market capitalization of global car companies. In the Chinese market, the market capitalization of battery and vehicle enterprises such as Ningde era and BYD is also in the forefront of A shares in the same industry.

As the world's second-largest power battery supplier, the capital market may also be "convinced" of the performance of LG New Energy after its listing, so it is understandable that the enthusiasm for subscription is so high.

Recently, Kwon Young-soo, CEO of LG New Energy, announced at an online media conference: considering that more battery orders have been received, it is expected that the global market share will surpass that of Ningde era to become the first in the world. It also said that LG New Energy has a wider customer base, while Ningde Times only operates factories in China.

Of course, this kind of "declaration of war" is a bit suspected of creating momentum and valuation for its listing. At present, LG new energy still has a certain gap with Ningde era in terms of global market share, capacity planning, cooperative car companies and so on.

From January to November 2021, Ningde era still dominates the global power battery market, with a market share of 31.8%, surpassing the second-ranked LG New Energy with a share of 20.5%, according to industry data.

However, the strength of LG new energy should not be underestimated.

According to public information, the main customers of LG New Energy include Tesla, Volkswagen, General Motors, Audi, Hyundai, Ford, Volvo, Porsche and many other well-known global car companies. LG New Energy claims that its total orders-on-hand in 2022 have reached 260 trillion won (1.38 trillion yuan).

With reference to the trillion market capitalization in the Ningde era, the capital market is generally optimistic about the second LG new energy.

In the prospectus, LG New Energy revealed the purpose of raising funds, and plans to invest about 137.645 billion yuan in production expansion and technology research and development. These expansion projects include projects located in China, the United States, Poland and other regions. According to its plan, LG New Energy will set up several large-scale power battery production bases in China, South Korea, the United States, Europe, Indonesia and other countries and regions to build a "five-legged" global delivery system.

According to the capacity planning previously disclosed by LG New Energy, it plans to increase global power battery capacity to 260GWH by 2023 and 500GWh by 2025. According to the current layout of its major global production bases, its capacity is expected to exceed the previously planned value by 2025.

In the Chinese market, two leading domestic and global battery companies are expected to enter the capital market in 2022.

Recently, it has been reported that Honeycomb Energy has been listed for the record in Jiangsu Securities Regulatory Bureau. According to the listing guidance report, the controlling shareholder of Honeycomb Energy is Baoding Ruimao Enterprise Management Consulting Co., Ltd., with a shareholding ratio of 39.4%.

On January 13, Citic Securities disclosed that it recently signed a listing coaching agreement with Honeycomb Energy. The two sides plan to complete the preparation of the application documents for the listing of Honeycomb Energy by March this year.

According to Battery China, so far, Honeycomb Energy has completed four rounds of financing, with a total financing amount of more than 20 billion yuan.

Of the four rounds of financing, three rounds of financing were completed in 2021: in February 2021, Honeycomb completed round A financing, China Investment Investment, Bank of China Investment lead; in July, Series B financing reached 10.28 billion yuan, BOC led Investment, added Xiaomi, Sany heavy Industry, IDG Capital, etc.; in December, completed B+ round financing, new investors Xingyu shares, Dazu Laser and so on.

In terms of installed strength, data from the Power Battery Application Branch show that Honeycomb Energy ranked sixth in the Chinese market in terms of 2.19GWh from January to November 2021, accounting for 1.6% of the Chinese market share. For battery companies that only started supporting in the second quarter of 2020, Honeycomb Energy is growing very fast.

In terms of capacity layout, the planning of honeycomb energy is also very "rapid". According to the statistics of Battery China, the battery capacity under construction (including existing expansion) signed by Honeycomb Energy in 2021 has reached 295GWh. In 2021 alone, Honeycomb Energy has successively laid out large-scale power battery bases in Suining, Huzhou, Maanshan, Nanjing, Chengdu, Changzhou, Yancheng, Shangrao and other places.

Behind the rapid capacity layout, on the one hand, Honeycomb Energy has a strong expectation for the development of global power and energy storage market; on the other hand, it has made rapid progress in customer and market promotion, and cooperative car companies and supporting models are rising rapidly.

In December 2021, Honeycomb Energy officially released the leading "600" strategy on its "Battery Day" according to its forecast for electric vehicles and energy storage market, as well as the growth of orders from cooperative car companies. it is planned that by 2025, the production capacity of power and energy storage batteries will reach 600GWh. at the same time, it will make a large-scale layout in many aspects, such as technology, supply chain, capital and ecology, in order to enter the global leading enterprises.

With the multi-dimensional development of installation, capital, production capacity and technology, the capital road of Honeycomb Energy has attracted a lot of attention, which is believed to be an important bright spot of the new energy sector in China's capital market in 2022.

Similarly, Sinotrans, which ranks first in the installed capacity of the Chinese market, has also launched the road to listing.

Recently, Innovation Airlines, the third largest power battery company in China, has also launched the road to listing, according to the official website of the China Securities Regulatory Commission. It was later confirmed that Sinotrans would go public in Hong Kong and plan to raise US $1 billion.

In fact, in November 2021, Liu Jingyu, chairman of Sinovel, revealed at a strategy conference that the company had completed its shareholding transformation and planned to land in the capital market. She mentioned at the time that AVIC plans to have more than 500 GWh, of battery capacity by 2025 and expects to achieve a capacity of 1000 GWh by 2030. In June 2021, Sinovel announced a plan to achieve the planned production capacity of 300GWh by 2025.

Judging from the actions of last year, the road of capacity expansion of Sinovel is also very positive. In January 2021, AVIC announced the investment plan for the Changzhou Phase IV project with a production capacity of 25GWH; in May, it announced the Xiamen Phase III production expansion project; subsequently, AVIC announced new production bases in Chengdu, Sichuan and Wuhan, Hubei; and in August, the company announced a new power and energy storage battery industry base with 50GWh production capacity in Hefei.

Undoubtedly, with the above-mentioned companies landing in the capital market, on the one hand, they can raise more funds for capacity expansion, technology research and development, and further enhance the competitiveness of related enterprises in the global battery field; at the same time, it is also expected to accelerate the rapid development of the whole power battery industry and even the industrial chain.

In addition to the above-mentioned enterprises that have been determined to land in the capital market this year, more battery companies in the future, including Lishen Battery and Jiewei Power, are also expected to land on the capital market with the development.