Chinese battery maker Guoxuan Tech is considering raising about 10 billion yuan ($1.6 billion) by issuing global depositary receipts (GDR) in Switzerland, according to people familiar with the matter, according to Bloomberg.
Guoxuan Hi-Tech has chosen China International Capital Corporation and Haitong Securities to arrange the issuance of global depositary receipts, which could be listed in Switzerland as early as the second half of this year, according to people familiar with the matter. People familiar with the matter also revealed that negotiations are under way and details such as the scale and timing of Guoxuan Hi-Tech issuing global depositary receipts may change. If the offering is successful, Guoxuan Tech could become one of the first Chinese companies to list in Switzerland.
A representative of China International Capital Corporation declined to comment, while representatives of Guoxuan Hi-Tech and Haitong Securities did not immediately respond to requests for comment.
Photo: Guoxuan Hi-Tech
In February, the China Securities Regulatory Commission issued an updated draft of the "Shanghai-London Stock Connect" mechanism, which included Switzerland, Germany and Shenzhen. Shanghai-London Stock Exchange originally refers to the mechanism of interconnection between the Shanghai Stock Exchange and the London Stock Exchange. companies listed in the two places that meet the requirements can issue depositary receipts and list on each other's market.
Photo: Guoxuan Hi-Tech
In March, Guoxuan Tech announced plans to issue global depositary receipts, adding that the plan still needed approval from shareholders and regulators, but did not provide further details. Guoxuan Hi-Tech plans to use the money to accelerate its international strategy, meet its overseas funding needs and hire overseas research and technical personnel.
Guoxuan Tech was founded in 2006 and has set up research centers in China, Singapore, the United States, Germany and Japan, and listed in Shenzhen in 2015. In 2020, Volkswagen Group invested 1.1 billion euros to become its largest shareholder. Guoxuan Hi-Tech shares have fallen about 43% so far this year, with a market capitalization of about $7.6 billion.
Guoxuan Hi-Tech plans to more than triple its battery capacity to 300 GWh by 2025, with 1/3 of that coming from Europe, North America, South and Southeast Asia.