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Chinese EV Battery Manufacturer CNGR Considers Subsidiary IPO on Indonesian Stock Exchange

Bisnis/Himawan L Nugraha

Fri 22 Sep 2023, 09:00 AM



Electric vehicle (EV) battery manufacturer from China, CNGR Advanced Materials Co. considering its subsidiary to conduct an initial public offering ( IPO ) in Indonesia. It is known that CNGR is also an EV battery supplier for Elon Musk's Tesla Inc.

According to Bloomberg , Thursday (14/9/2023), CNGR is in talks to IPO its subsidiary operating in Indonesia. An IPO on the Indonesia Stock Exchange (IDX) is planned for the end of 2024.

Meanwhile, the CNGR entity has the potential to reap fresh funds of USD 300 million to USD 500 million, or a maximum equivalent to IDR 7.67 trillion (exchange rate of IDR 15,357 per US dollar).

"CNGR is in the process of preparing a unit in Indonesia that will include its domestic smelter assets, said one anonymous source," wrote Bloomberg.

For information, CNGR is also a company listed on the Shenzhen Stock Exchange in 2020.

Meanwhile, the reason CNGR is considering its subsidiary to IPO on the IDX is because Indonesia has sufficient capacity to produce matte nickel, as a raw material for electric vehicle batteries. 

Referring to the official CNGR website, the company's core products include high voltage tricobalt tetraoxide, Nickel Cobalt Manganese hydroxide (NCM) with high nickel content and Nickel Cobalt Aluminum hydroxide (NCA).

The products are supplied to the world's top 500 companies, including Tesla, Samsung, CATL LG and Panasonic. CNGR supplies batteries to Tesla until 2025.

Based on Bisnis news records , in November 2022, the Ministry of Investment/BKPM also signed a Memorandum of Understanding (MoU) with CNGR Advanced Material Co Ltd with a total investment value of USD 5 billion or around IDR 78 trillion.

In this MoU, the Ministry of Investment/BKPM is responsible for assisting CNGR in obtaining all project permits and investment incentives from the government.

CNGR also signed a cooperation agreement with PT Aneka Tambang Tbk. (ANTM) or Antam to develop a matte nickel factory with a capacity of 80,000 tons for raw materials for electric vehicle batteries.

As is known, the Indonesian IPO market is currently enthusiastic because it is busy with the actions of jumbo nickel issuers who listed their initial shares this year. 

For example, PT Trimegah Bangun Persada Tbk. (NCKL) or Harita Nickel owned by conglomerate Lim Hariyanto listed on the Stock Exchange in April 2023 and raised funds of around IDR 10 trillion. Apart from that, PT Merdeka Battery Materials Tbk, which also had an IPO in the same month, raising IDR 8.74 trillion.

Image source: Bisnis/Himawan L Nugraha

Source: Baterai EV China CNGR Pertimbangkan IPO Anak Usaha Di Bursa Indonesia


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