Top Battery Equipment Supplier Could Become First Blockbuster Hong Kong IPO Of 2026
Wuxi Lead Intelligent could become the first blockbuster Hong Kong IPO of 2026, after its approval last week by China's securities regulator
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Key Takeaways:
Hong Kong IPO candidate Wuxi Lead Intelligent commands 15.5% of the global market for lithium battery manufacturing equipment, benefiting from China's EV dominance
Solid-state battery equipment offers major growth potential for the company, but the industry's highly cyclical nature requires careful capital management
Everyone knows that China dominates battery manufacturing, home to global leader CATL as well as smaller players like CALB and Gotion High Tech (002074.SZ). But far less visible is China's equally commanding position in the upstream manufacturing equipment segment behind the finished product.
The leader in that space is Wuxi Lead Intelligent Equipement Co. Ltd. (300450.SZ), whose plan for a second listing in Hong Kong, complementing its current listing in Shenzhen, made a key advance last week after receiving approval from China's securities regulator.
As the leader in its class, the company is hoping to follow in the footsteps of CATL, one of its top customers, whose shares have nearly doubled since its own second listing last May that was Hong Kong's largest for the year, raising more than $4.6 billion.
The China Securities Regulatory Commission's (CSRC) approval is the latest advance in a rocky overseas listing journey for Wuxi Lead Equipment, which terminated plans for a Switzerland listing in early 2025. It then pivoted to Hong Kong with its submission of an IPO prospectus, but that filing lapsed, and the company had to submit an updated version in August last year.
Wuxi Lead Equipment filed an updated prospectus on Sunday after the CSRC approval, suggesting the listing is likely to move forward quickly after clearing the key regulator advance.
The company, which has been listed in Shenzhen since 2015, didn't announce how much it would raise. But its selection of A-listed underwriters JPMorgan and Citic Securities suggests the offering size should be substantial, attracting both Asian and global investors.
Those investors are likely eying the company's leading position in battery equipment, similar to CATL's position for finished batteries. Its investments in emerging solid-state battery equipment technology and diversification into photovoltaic manufacturing equipment could serve as additional attractions. However, investors also need to consider certain risks, including the cyclical nature of both the battery ...
