Zhejiang Huayou Cobalt Co. completes GDR Offering and Listing on SIX  

Under the legal guidance of Swiss law firm, Niederer Kraft Frey (NKF), Zhejiang Huayou Cobalt Co., a global enterprise in the new energy lithium-ion battery material industry, has successfully completed its offering of global depositary receipts (GDRs) and subsequent listing on the SIX Swiss Exchange under the China-Switzerland Stock Connect.  

Zhejiang Huayou Cobalt Co., whose A Shares are listed on the Shanghai Stock Exchange, offered 50,000,000 GDRs, representing two A-Shares each, at an offer price of USD 11.65. The offering generated gross proceeds of approximately USD 582.5 million. The GDRs commenced trading on the SIX Swiss Exchange on July 7, 2023. 

As a main player in the new energy lithium-ion battery material industry, Zhejiang Huayou Cobalt Co. covers all essential stages of the value chain, from resource development (including nickel, cobalt, and lithium) to the production of lithium-ion battery materials. This strategic expansion into the global market reflects the company’s commitment to technological innovation and meeting the growing demand for sustainable energy solutions. 

The net proceeds from the GDR offering will be utilized by Zhejiang Huayou Cobalt Co. to expand its production capacity of new energy battery materials, both domestically and in overseas markets, as well as to support further research and development initiatives. This investment will strengthen the company’s position as a key contributor to the advancement of clean energy technologies. 

The offering was facilitated by CLSA Limited, acting as the sole global coordinator. Additionally, Huatai Financial Holdings (Hong Kong) Limited, Citigroup Global Markets Limited, and HSBC Continental Europe served as joint bookrunners and managers for the transaction. Their expertise and market knowledge contributed to the successful execution of the offering. 

NKF provided legal advisory services to Zhejiang Huayou Cobalt Co. throughout the transaction. The team advising on the transaction was co-led by Capital Markets partners Philippe Weber (pictured right) and Daniel Bono (pictured left), working with associates Thiago Claro and Manuel Hirlinger (both Capital Markets).