The large power battery company may severely suffer from the lifting of restrictions.
On June 8, 2021, CATL announced that about 952 million restricted shares will be lifted on June 11, accounting for 40.9% of the company's total share capital. The actual number of tradable shares is about 673 million, accounting for 28.9% of the total outstanding shares. The market value of lifting the ban reached CNY 390 billion.
CATL was listed in the Growth Enterprise Market (GEM) of the Shenzhen Stock Exchange on June 11, 2018. Five shareholders have applied for lifting the restrictions on the sale of shares this time. They are Ningbo Meishan Free Trade Port Ruiting Investment, Shilin Huang, Ping Li, Xinjiang Dongpeng Weichaung Equity Investment Partnership and Greenland Financial Holdings.
Tianfeng Securities states that the lifting of the ban by the original IPO shareholders has had a small impact on the subsequent share price. Stocks with relatively high valuations are more likely to be negatively affected after the lifting of the ban. Everbright Securities believes that compared with the lifting of the ban on initial shares, the lifting of the ban on fixed increase shares is more likely to have a negative impact on the short-term performance of individual stocks. With the lifting of the ban, the short-term performance of individual stocks is getting worse.