Capitalists eagerly entered the solar energy storage field in 2023, with financing scale potentially reaching more than 100 billion. More and more Chinese solar companies are accelerating the pace of listing on the capital market, submitting applications, sprinting for IPOs, and longing to list successfully.
In 2023, with more than 100 companies in energy storage niches lining up to sprint for an IPO, there was also a sudden reversal at the last step—voluntary withdrawal of applications—and the number of companies encountering obstacles in their IPOs is increasing. Competition in the capital market, expansion of production capacity, technology iteration, market development, etc., are all inseparable from continuous financial support. However, more and more companies are getting stuck at the final step on the road to an IPO. According to incomplete statistics, at least 20 solar companies have terminated their listings in the past year.
- Growatt: The global household inverter leaderGrowatt, founded in 2011, is one of the first Chinese solar companies to develop an energy storage and global business layout, and it is one of the top ten inverter manufacturers in the world. In 2022, Growatt household energy storage inverters accounted for 15.1% of the global market share, making it the world’s largest user-side energy storage inverter supplier. In 2022, Growatt sold 555,764 PCS of energy storage systems.
Growatt’s first IPO sprint began in 2017. In November of that year, Growatt submitted registration materials for listing counseling in Shenzhen and entered the coaching process. However, in September 2021, it was suddenly announced that the coaching had been terminated due to a “company strategic adjustment.” The following year, Growatt moved to the Hong Kong stock market. In June 2022, Growatt submitted its application form for the first time and passed the hearing of the Hong Kong Stock Exchange in November of that year. However, it expired after the IPO was not launched. It submitted its application form again in March 2023, and passed the Hong Kong Stock Exchange hearing again in May. The pre-roadshow financing target then fell, reduced from the initially expected US$1 billion to US$300 million–US$400 million. Subsequently, the listing process was halted, and there were rumors that it might accept an acquisition by the global private equity giant Blackstone Group.
- SVOLT Energy: A new lithium battery energy storage star backed by Great Wall MotorsSVOLT Energy, invested in and established by Great Wall Motors in 2018, is mainly engaged in the production and sales of new energy vehicle power batteries and energy storage battery systems.
In 2022, SVOLT became a top-10 power battery manufacturer in China, ranking seventh. Before its IPO attempt, SVOLT Energy completed a total of 7 rounds of financing, with a cumulative funding amount of more than 20 billion yuan. According to its plan, SVOLT Energy expected to have a production capacity of 31GWh in 2023, 77GWh in 2024, and 105GWh of battery production capacity in 2025.
In November 2022, SVOLT Energy’s IPO application was accepted by the Shanghai Stock Exchange and entered the issuance and listing review stage in June 2023. On the evening of December 22, 2023, the Shanghai Stock Exchange website disclosed that SVOLT Energy voluntarily withdrew its issuance and listing application due to “comprehensive consideration of various factors,” and there were rumors that SVOLT Energy might apply for a listing on the Hong Kong Stock Exchange. According to its prospectus, SVOLT Energy’s withdrawn IPO originally planned to raise 15 billion yuan for the construction of lithium battery projects in three locations, the construction of a Wuxi R&D center, and the development of lithium batteries such as ternary high-density batteries and cobalt-free batteries. In addition, 2 billion yuan was to be used to supplement working capital. Its fundraising target of up to 15 billion yuan corresponded to a valuation of 60 billion yuan.
- Pisen Electronics: The legend of 3C consumer electronics accessoriesFounded in 2003, Pisen Electronics is a legend in 3C consumer electronics accessories. It is famous for its superior sales in charging series, mobile phone accessories, innovative electronics, and other products. Its founder, Zhao Guocheng, is known as the “Father of Power Banks.” However, its listing process is a dozen steps slower than Anker Innovation, which was listed as early as 2020.
Pisen Electronics was listed on the New OTC Market from 2015 to 2017. Since starting the first phase of listing counseling in January 2022, Pisen Electronics has experienced a total of 5 phases of counseling and finally submitted its application. On June 30, 2023, the official website of the Shenzhen Stock Exchange disclosed that Pisen Electronics planned to be listed on the main board. The IPO was originally planned to raise 757 million yuan to invest in Shenzhen production base relocation and expansion projects, R&D center and headquarters office construction, and brand building and marketing projects, as well as to strengthen its production capacity layout in cutting-edge product fields such as high-power power adapters, energy storage power supplies, and smart home tech. On September 28, 2023, the official website of the Shenzhen Stock Exchange showed that Pisen Electronics voluntarily applied to suspend the issuance and listing review process due to “updating financial information.”
More companies like Xysemi, Huahui New Energy, Jiuling Lithium, etc., have also terminated their listings. We appreciate these companies for their contributions to our environment.
