Cobalt Holdings has confirmed its intention to float on the main market of the London Stock Exchange, with backing from major cornerstone investors including Glencore PLC (LSE:GLEN) and Anchorage Capital.
The flotation, expected to take place around 10 June, will include a primary issue of new shares targeting institutional investors globally, as well as UK retail investors through the platform RetailBook.
Glencore will invest $24.3 million for a post-IPO stake of around 10%, while Anchorage is committing $23 million for roughly 9.5%. On this basis, the company would be worth around $243 million, or £182 million,
The offer will be open to qualified institutional buyers in the US under Rule 144A and international investors via Regulation S.
Citi has been appointed as sole sponsor and global coordinator, with Canaccord Genuity acting as joint bookrunner.
Cobalt’s listing will mark another test of investor appetite for new issuances on the London market, which has seen mixed activity in recent quarters.
The company, which does not operate mines or explore for metals, plans to buy and hold cobalt long term, betting on rising demand for the metal used in electric vehicle batteries, electronics and energy storage.
A six-year supply deal with Glencore worth up to $1 billion ensures access to premium-grade cobalt at a discount to current spot prices.
Led by Jake Greenberg, a co-founder of uranium specialist Yellow Cake, Cobalt believes a current oversupply in the market presents a rare buying opportunity.
Its model is deliberately lean, with logistics, storage and sourcing outsourced to reduce costs and maximise returns.
The IPO will give institutional and retail investors a new way to gain exposure to a key energy transition material without the risks tied to mining operations.