CATL Plans 20-40 Billion Yuan Share Buyback
Battery giant CATL announced plans to repurchase its own shares worth between 20 and 40 billion yuan. The company cited that its stock is currently undervalued.
Chinese battery manufacturer CATL, also known as Ningde Era, has announced plans to buy back its own shares valued between 20 and 40 billion yuan (approximately $2.8 to $5.6 billion USD). The buyback will be conducted through block trading, and all reacquired shares will be canceled, reducing the company's registered capital.
The company's management stated that the stock's recent price decline is due to short-term capital market fluctuations. CATL believes its own development prospects, financial health, profitability, and market position remain strong, making the current stock price "clearly undervalued." This planned repurchase is reportedly the largest in the company's history.
CATL intends to use its own funds or raised capital to finance the buyback. The maximum repurchase price has been set at 573 yuan per share. At the time of this report, CATL's A-shares closed at approximately 383 yuan, with a total market capitalization of around 1.77 trillion yuan (approximately $244 billion USD).
The share buyback program is expected to last for 12 months after approval by the company's general meeting of shareholders. This significant repurchase is anticipated to support the company's stock price and signal market confidence in its future value.