Latest news with #GlencoreInternational
Yahoo
13-05-2025
- Business
- Yahoo
Cobalt Holdings to raise $230m through IPO in London
Cobalt Holdings has announced plans to raise approximately $230m in an initial public offering (IPO) in London. Glencore International and entities managed by Anchorage Structured Commodities Advisor have committed as cornerstone investors to purchase approximately 20.5% of the shares to be offered in the IPO. Cobalt Holdings has secured a six-year supply contract with Glencore, ensuring access to premium-grade cobalt worth up to $1bn, and a further agreement to acquire up to 1,500 tonnes (t) of cobalt from Anchorage in 2031. The company's initial purchase involves 6,000t of cobalt, worth around $200m, from Glencore at a discount to the current spot price. Cobalt Holdings' ordinary shares are planned to be admitted to the equity shares category of the official list of the Financial Conduct Authority (FCA) and to trading on the Main Market of the London Stock Exchange. The expected admission date is June 2025. The offering positions Cobalt Holdings as the only company offering public equity investors pure-play direct exposure to the price of cobalt, a strategic raw material, without the risks and liabilities of cobalt exploration and mining operations. The current oversupply in the cobalt market provides an opportunity to acquire cobalt below long-term average prices, especially with the anticipated demand surge from industries such as electric vehicle (EV) batteries, portable electronics and energy storage systems. Cobalt Holdings CEO Jake Greenberg said: "Our strategy is simple: to provide equity investors with direct, pure-play exposure to the price of cobalt through a low-risk, low-cost business model that sees us buying physical cobalt and holding it for the long-term. 'We believe NOW is the right time to build a strategic stockpile of cobalt. The long-term price of cobalt has historically been well above the prevailing spot price. The DRC [Democratic Republic of Congo] has begun to impose export restrictions, reducing metal supply, while demand for cobalt more than doubled between 2015 and 2024, and is expected to rise by more than 54% between 2024 and 2031, primarily on the back of accelerating EV battery demand growth. 'We are delighted to have received the support of Glencore and Anchorage as cornerstone investors. Having two cobalt market experts partnering with us is a great validation of the merits of our strategy, timing and business model." Cobalt Holdings has committed to storing its cobalt in secure facilities across Belgium, the Netherlands, Singapore and South Korea to mitigate geopolitical risks and has insurance coverage for all metals in its care. In April this year, Premier African Minerals signed a non-binding letter of interest with Glencore International regarding the potential sale of spodumene concentrate from its Zulu Lithium and Tantalum Project. "Cobalt Holdings to raise $230m through IPO in London" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Business Times
12-05-2025
- Business
- Business Times
Cobalt Holdings plans London's biggest IPO in two years
[LONDON] Cobalt Holdings unveiled plans for an initial public offering in London in what could potentially be the biggest UK first-time share sale in more than two years. The firm, which purchases and hold physical stock of the key battery metal, wants to raise about US$230 million through the sale of new shares, according to a statement on Monday (May 12). Glencore International and entities managed by Anchorage Structured Commodities Advisor have agreed to take up about 20% of the shares to be offered, the company said. A London listing for Cobalt Holdings could be a shot in the arm for IPO activity in the UK, which has suffered from a dearth of offerings in recent years and high profile exits. Companies have raised less than US$85 million from first-time share sales in the UK so far this year, compared with almost US$4 billion for all of Europe, according to data compiled by Bloomberg. Cobalt Holding's IPO could potentially be the biggest since Ithaca Energy Plc raised the equivalent of about US$300 million in the last quarter of 2022. The proceeds of the listing will be used to buy about 6,000 tons of cobalt from Glencore at a below-market price, Cobalt Holdings said. Cobalt prices have plunged over recent years as a result of oversupply, but the company said the slump creates a buying opportunity ahead of an eventual tightening of the market. Unlike other battery metals including nickel and lithium, which are mined as standalone products, cobalt is produced as a byproduct of other mining operations. That means that producers don't tend to dial back output even if prices collapse, and in recent years the market has become swamped by supply coming from copper mines in the Democratic Republic of Congo and nickel mines in Indonesia. Cobalt has historically been a difficult market for investors to access, given that there are no large pure-play miners of the metal, and futures markets are much less liquid than large industrial commodities such as copper. Previous ventures to offer investors exposure to cobalt have also proven to be controversial, with Toronto-listed firm Cobalt 27 being taken private by its key hedge-fund backer in 2019 after a collapse in prices, and a high-profile theft of its metal from storage facilities in Europe. Citigroup is leading the Cobalt Holdings IPO, according to the statement. BLOOMBERG
