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LONDON - Cobalt Holdings PLC, a firm specializing in cobalt asset holding, has announced its intention to initiate a Global Offer expected to raise approximately $230 million. The company aims to list its ordinary shares on the London Stock Exchange (LON:LSEG)’s Main Market, with the anticipated admission occurring in June 2025.
Cobalt Holdings positions itself as the sole company offering investors direct exposure to cobalt prices without the risks associated with cobalt mining and production. The company’s strategy involves purchasing and storing physical cobalt, capitalizing on the current market oversupply to acquire the metal below long-term average prices. Demand for cobalt is predicted to surge, driven by its use in electric vehicle batteries, portable electronics, and energy storage systems.
The company has secured cornerstone investments from Glencore (OTC:GLNCY) International AG and Anchorage Structured Commodities Advisor, L.P., which will represent approximately 20.5% of the offered shares. In addition, Cobalt Holdings has established a six-year supply contract with Glencore for premium-grade cobalt worth up to $1 billion and an agreement with Anchorage for up to 1,500 tonnes of cobalt in 2031.
CEO Jake Greenberg highlighted the strategic timing for building a cobalt stockpile, citing export restrictions in the Democratic Republic of Congo and a forecasted rise in cobalt demand. The company’s initial purchase will account for roughly one-third of the cobalt surplus supply in 2025, according to Benchmark Mineral Intelligence.
The company’s approach is to offer a low-risk, low-cost business model to investors, with an outsourced operating model to maximize efficiency. The management team, led by Greenberg, brings extensive experience in commodities, trading, and finance.
Details of the Global Offer will be disclosed in a future prospectus, which will be available for inspection on Cobalt Holdings’ website, subject to access restrictions. The company has appointed Citigroup (NYSE:C) Global Markets Limited as Sole Sponsor, Sole Global Coordinator, and Joint Bookrunner, with Canaccord Genuity Limited also serving as Joint Bookrunner for the potential IPO.
This news is based on a press release statement, and potential investors are advised to consult the prospectus for complete information once published.
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