Cobalt Holdings is planning to raise approximately $230 million through an initial public offering (IPO) in London, with the expected admission of shares to the stock exchange in June 2025. Glencore and Anchorage Structured Commodities Advisor are set to invest 20.5% in the offering, signaling confidence in the venture. This IPO could be a significant boost for London's stock market, which has been working to attract new listings.
The company intends to allocate around $200 million of the IPO proceeds to purchase 6,000 metric tons of cobalt from Glencore. Cobalt Holdings believes that current low cobalt prices present a strategic opportunity. This purchase represents approximately 33% of the expected cobalt surplus supply in 2025.
Cobalt Holdings' CEO, Jake Greenberg, stated the company aims to provide equity investors with direct exposure to cobalt prices through a low-risk, low-cost business model. The company has also secured a six-year supply contract with Glencore, providing access to up to $1 billion of cobalt. The IPO is being managed by Citigroup.