SVOLT Energy Terminated IPO, Originally Proposed to Raise USD 15 Billion

Technology Author: Muriel Meng Editor: Yiru Qian Dec 26, 2023 06:59 PM (GMT+8)

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Recently, according to the Shanghai Stock Exchange (SSE) disclosure, the initial public offering (IPO) application of SVOLT Energy Technology Co., Ltd. (referred to as "SVOLT Energy") and its sponsor CITIC Securities has been withdrawn. In accordance with relevant regulations, the SSE has terminated the review of its IPO application.

Regarding the termination of the IPO, SVOLT Energy responded by stating that, after considering various factors and prioritizing the best interests of the company and its shareholders, they have decided to withdraw the A-share application and explore alternative financing options.

SVOLT Energy's IPO application was accepted on November 18, 2022, and they received the first round of inquiries on December 14. The company responded to the inquiries on March 23, 2023, but there have been no subsequent rounds of inquiries or progress into the listing committee stage.

According to the prospectus, SVOLT Energy had planned to raise CNY 15 billion through its IPO on the Science and Technology Innovation Board (STAR Market). The funds were intended for the construction of three lithium battery projects in three locations, the establishment of a research and development center in Wuxi, and the development of ternary high-density batteries, cobalt-free batteries, and other lithium battery technologies. An additional CNY 2 billion was earmarked for supplementary working capital.

SVOLT Energy originated from the power battery division of Great Wall Motors and began pre-research on power batteries in 2012. In 2018, it officially became an independent company dedicated to the research, production, and sales of power batteries and energy storage battery systems for new energy vehicles. The company's main products include battery cells, modules, battery packs, and energy storage battery systems. They also provide overall solutions for power batteries and energy storage products according to customer requirements.

In terms of financial performance, from 2019 to 2021, SVOLT Energy achieved operating revenues of CNY 929 million, CNY 1.736 billion, and CNY 4.474 billion, respectively. The net losses during the same period were CNY 326 million, CNY 700 million, and CNY 1.154 billion. In the first half of 2022, the company's revenue was CNY 3.738 billion, with a net loss of CNY 897 million and a non-GAAP net loss of CNY 1.017 billion.

The company stated that due to the high intensity of research and development investments, the ramp-up of production capacity, and the increase in raw material prices, they have not yet achieved profitability and have accumulated unremedied losses.

Currently, SVOLT Energy has completed five rounds of financing, with a cumulative financing amount exceeding CNY 20 billion and a post-investment valuation of CNY 46 billion. In February 2021, the company raised CNY 3.5 billion in Series A financing, with investors including China Merchants Securities, CCB Investment, IDG, and Kaihui Fund. In July, they secured CNY 10.28 billion in Series B financing from CCB Investment, Country Garden Ventures, Sany Heavy Industry, China Construction Bank Investment, IDG, Xiaomi Group, Deep Innovation Investment, and Huaxing Capital. In December, they received an additional 6 billion in Series B+ financing from Taikang Investment and others.

In terms of global expansion, SVOLT Energy currently has two factories in Germany. One is the Saarland battery module PACK factory, which was selected in 2020 with a total investment of approximately EUR 2 billion and a planned capacity of 24 GWh. The factory is under construction and expected to be completed in mid-2024. The other factory is located in Brandenburg, with a planned capacity of 16 GWh and expected to start production in 2025. SVOLT Energy plans to achieve a battery capacity of at least 50 GWh in Europe by 2030.

In addition to the European market, SVOLT Energy is also expanding into the Southeast Asian market. In July of this year, they started construction on their first module PACK factory in Thailand, with a total investment of USD 30 million and expected completion by the end of 2023. Their strategic cooperation with Thailand's energy giant, PTT Group, has strengthened their influence in the region.

In August of the same year, SVOLT Energy participated in the Zambia Agricultural Business Exhibition for energy storage, further expanding its presence in the African market. According to foreign media reports, SVOLT Energy is also considering building a battery factory in Finland with a planned annual capacity of 50 GWh.