EU and US could reach trade deal this weekend - Reuters
Investing.com -- Cobalt Holdings said Monday it intends to go public in London this June, aiming to raise approximately $230 million in its initial public offering (IPO).
As part of the listing, commodities giant Glencore (LON:GLEN) (OTC:GLNCY) will acquire a 10% stake in the cobalt-focused investment vehicle, with Glencore and investment firm Anchorage Capital together taking a 20.5% cornerstone position.
Shares in Glencore popped more than 6% following the announcement.
The move reflects growing investor interest in cobalt, a key component in electric vehicle batteries, despite a sharp decline in its market price over the past year. Cobalt has dropped from nearly $40 per pound in 2022 to around $11, driven by a global oversupply.
To support its strategy, Cobalt Holdings has secured a six-year supply agreement with Glencore valued at up to $1 billion. This includes an initial purchase of 6,000 tonnes at a discount to the current spot price—an amount the company says represents about a third of projected surplus cobalt supply for 2025. It has also entered into an agreement with Anchorage to buy up to 1,500 tonnes of cobalt in 2031.
The IPO would mark a rare boost for London’s main market, which has struggled in recent years to attract high-profile listings. The London Stock Exchange (LON:LSEG) saw its highest number of delistings since the financial crisis in 2023, as firms increasingly turn to private funding or alternative markets.
Led by Jake Greenberg, Cobalt Holdings is modeled after Yellow (OTC:YELLQ) Cake, a London-listed uranium investment firm co-founded by Greenberg in 2018. Like Yellow Cake, Cobalt Holdings will focus on buying and holding physical metal as a long-term investment.
Greenberg said the company’s mission is “to provide equity investors with direct, pure-play exposure to the price of cobalt through a low-risk, low-cost business model that sees us buying physical cobalt and holding it for the long term.”
He added that its approach gives investors access to cobalt “without the direct risks and liabilities associated with cobalt exploration, development or mining operations.”