(Bloomberg) — Chinese battery maker Gotion High-Tech Co. is considering raising about 10 billion yuan ($1.6 billion) from a sale of global depositary receipts in Switzerland, according to people familiar with the matter.
The Shenzhen-listed company picked China International Capital Corp. and Haitong Securities Co. to arrange the offering, said the people, who asked not to be identified as the information is private. A listing could happen as soon as in the second half of this year, the people said.
Deliberations are ongoing and details of the GDR sale including size and timeline could change, the people said. A representative for CICC declined to comment, while representatives for Gotion and Haitong Securities didn’t immediately respond to requests for comment.
If the deal is successful, Gotion could join Sany Heavy Industry Co. in becoming the first batch of Chinese companies to trade in Switzerland under an expanded cross-border listing program. China’s securities regulator said in February that the Shanghai-London Stock Connect — which lets companies listed on one exchange offer depositary receipts on the other — would be enlarged to include firms in Switzerland, Germany and Shenzhen.
Founded in 2006, Gotion makes batteries for electric vehicles and has research centers in China, Singapore, the U.S., Germany and Japan, according to its website. The No. 4 battery manufacturer in China went public in Shenzhen in 2015. Volkswagen AG in 2020 became its largest shareholder in an 1.1 billion euro deal.
Shares in Gotion have fallen about 43% this year, giving the company a market value of about $7.6 billion.
Gotion announced its GDR offering plans last month, adding it still requires approvals from shareholders and regulators. The Hefei-based company didn’t provide details on the share sale. It plans to use the proceeds for purposes including accelerating its international strategy, meeting its overseas funding needs and hiring overseas research technicians.
The battery maker also aims to more than triple its capacity to 300 gigawatt-hours by 2025, with a third being in Europe, North America, South and Southeast Asia, according to a separate statement.
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