BEIJING -- Chinese electric vehicle battery maker Farasis Energy has received regulatory approval to raise about 3.4 billion yuan ($479 million) in an initial public offering on China's Nasdaq-like STAR board, according to a statement by the Shanghai Stock Exchange.
Farasis, which said last year that it planned a public stock offering, is expected to be valued at around 30 billion yuan after the IPO, said two sources with direct knowledge of the matter.
Farasis, whose main products are nickel-cobalt-manganese batteries for electric vehicles, aimed to list shares in the second quarter, sources added, declining to be named as they were not authorized to speak to media.
Farasis did not immediately respond to a request for comment.
The battery maker is raising the most funds of any company that has received approval so far this year to proceed with a STAR board listing.
EV battery makers in China, the world's biggest auto market, are expanding manufacturing capacities, with automakers from Tesla to Volkswagen planning to roll out more electric models.
China's booming EV sales were cut short last year by a roll-back in government subsidies. However, China on Tuesday reversed the move and will extend subsidies for new energy vehicle purchases and extend an NEV purchase tax exemption for two years.
Eleven-year-old Farasis Energy counts China's BAIC BluePark and Great Wall as major customers. It is also building a factory in Germany to help Daimler's Mercedes-Benz ramp up EV production.
The company has plants in China's eastern cities of Ganzhou and Zhenjiang.
Other major battery makers in China include Fujian-based CATL and BYD Corp. South Korean LG Chem and SK Innovation are also expanding capacity as restrictions on the use of foreign battery makers' products have eased.
In a filing with the Shanghai stock exchange, auditor Ernst&Young said Farasis Energy's business operations in the first quarter might be affected by the coronavirus epidemic.
Overall car sales in the country plunged about 79 percent in February, as customers stayed away from auto showrooms amid social-distancing restrictions.