(Bloomberg) — Chinese battery maker Gotion High-Tech Co. raised $685 million after pricing its global depositary receipts in Switzerland at the bottom of a marketed range, as Chinese firms rush to take advantage of the expanded stock connect program.
The company sold 22.8 million GDRs at $30 each, according to a press release, confirming an earlier Bloomberg News report. They were marketed between $30 and $30.28 each. Each GDR represents five of the company’s A-shares.
The GDRs were priced at about a 3.6% discount to the closing price of Gotion’s A-shares on Monday, according to Bloomberg calculations. The company’s shares in Shenzhen rose as much as 3% on Tuesday, their largest increase in nearly two weeks, giving the company a market value of about $10.5 billion.
The offering is the largest so far among the four China-listed companies that have been rushing to sell shares in Zurich this week. The listings follow the recent widening of the companies and venues eligible for the Shanghai-London Stock Connect, which makes it easier for firms registered on one exchange to offer depository receipts on the other.
Building materials manufacturer Keda Industrial Group Co. and Ningbo Shanshan Co., a maker of lithium battery products, raised $173 million and $319 million, respectively, while battery maker Gem Co. may raise as much as $245 million. The four companies are slated to start trading in Zurich on July 28.
Founded in 2006, Gotion makes batteries for electric vehicles and has research centers in China, Singapore, the US, Germany and Japan, according to its website. Volkswagen AG became its largest shareholder in 2020 with a 1.1 billion euro ($1.1 billion) deal.
Gotion planned to raise as much as $1.6 billion from the GDR sale, Bloomberg News reported in April.
China International Capital Corp. and Haitong International Securities Group Ltd. are joint global coordinators in Gotion’s GDR sale.
(Updates with confirmation of GDR sale details throughout.)
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