China battery maker Gotion raises US$685m in Swiss listing

CHINESE battery maker Gotion High Tech raised US$685 million in a public share sale on the SIX Swiss Exchange, joining other Chinese firms rushing to tap an expanded stock connect programme.

GEM, a battery and material recycler, also completed a share sale in Switzerland, raising US$346 million.

Gotion sold 22.83 million global depository receipts (GDRs), which each represent 5 China-listed A-shares, at US$30 each, a 3.5 per cent discount to its A-share close of 42 yuan (US$8.6) on Monday (Jul 25), according to its filings to the Shenzhen Stock Exchange on Tuesday.

Gotion makes lithium-ion power batteries used in electric vehicles and counts Volkswagen as a strategic partner.

The deal is the biggest recently for Chinese companies turning to the Swiss exchange to carry out listings and raise capital.

GEM sold 28.18 million GDRs at US$12.28 each, according to its regulatory filings on Tuesday.

Two other firms, Keda Industrial last week raised US$173 million and Ningbo Shanshan raised US$319 million in 2 Swiss deals.

Gotion has previously said it would use the proceeds from the Swiss listing to fund global expansion.

Shanghai-listed Sany Heavy Industry and Lepu Medical Technology (Beijing) said in filings in March they were planning to sell GDRs in Switzerland to raise cash.

Both companies also said they were answering government calls to strengthen connectivity between Chinese and European capital markets, and that listing overseas would help broaden financing channels and improve corporate governance.

Chinese offshore listings, especially in the US, have ground to a halt since Didi Global's New York listing on Jun 30, 2021, that triggered Beijing's regulatory backlash over data security concerns.

Regulatory uncertainty combined with China's tech crackdown has contributed to a 90 per cent decline in Hong Kong's listing volumes so far this year, compared to 2021, according to Refinitiv data.

The China Securities Regulatory Commission (CSRC) is also working on final rules that will increase the scrutiny that Chinese firms wanting to list overseas will face. REUTERS