Specialized metals investment fund Cobalt Holdings announced Wednesday that it is abandoning its plans to list on the London Stock Exchange, ending hopes for one of the biggest IPOs in the British capital since early 2024. The company did not specify the reasons for the withdrawal, which came just days after the IPO price was set at $2.56 per share.
According to a source close to the matter, the process was halted due to a lack of investor demand. Another source said that management remains confident in the company's business model and the cobalt market, adding that alternatives are being explored, including private financing.
The IPO, which would have valued Cobalt Holdings at around $230m, was set to be the largest in London since Air Astana went public in February 2024.
The London stock exchange is struggling to attract new listings, a challenge that prompted authorities to adopt reforms in 2024 to improve its competitiveness against New York and the European Union in the post-Brexit environment.
Several London-listed companies have moved their primary listing to New York or chosen Europe for their IPO, hoping to obtain better valuations there. Last month, Reuters reported that low-cost fashion giant Shein was considering a listing in Hong Kong after its London plans fell through. In February, Unilever opted for Amsterdam as the main listing venue for its subsidiary Ben & Jerry's.
Glencore, along with entities affiliated with investment firm Anchorage Structured Commodities Advisor, had committed to subscribe for approximately 20.5% of the shares offered in Cobalt's IPO when it was announced in early May.
Holding physical cobalt and bound by a supply contract with Glencore, Cobalt Holdings planned to use most of the funds raised to purchase some 6,000 tons of this metal, which is essential for batteries, for approximately $200m from the mining giant.
