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Shares of the Chinese battery manufacturer declined following news that its co-founder and third-largest shareholder plans to reduce their stake in the company.
The stock closed down 3.3% at CNY391 (approximately USD55.02) on the Shenzhen exchange, after dropping over 5% during early trading hours. Since hitting a low point earlier this year in early April, the stock has gained roughly 93% up until last Friday’s closing. In Hong Kong, the company’s shares also fell by 3.3%, ending the day at HKD524 (about USD67.42).
The executive, Huang Shilin, announced intentions to transfer more than 45.63 million shares listed in Shenzhen to qualified institutional and private equity investors via a pricing inquiry. Once this transfer is finalized, Huang’s ownership stake will decrease from 10.2% to approximately 9.2%.
Details regarding the pricing or total value of the shares involved were not disclosed. However, based on the closing price on November 14 of CNY404.12, the estimated market value of the 1% stake Huang plans to sell is around CNY18.4 billion (about USD2.6 billion).
Huang Shilin is a key co-founder of the company. In August 2022, he stepped down from all executive positions, including vice chairman and deputy general manager.
Currently, Huang holds shares in over ten companies and controls a provider of energy storage systems called Contemporary Nebula Technology Energy. This company specializes in developing and manufacturing energy storage equipment and solutions for power generation, grid management, and end-users.
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