Cobalt Holdings has announced plans to raise approximately $230m in an initial public offering (IPO) in London.
Glencore International and entities managed by Anchorage Structured Commodities Advisor have committed as cornerstone investors to purchase approximately 20.5% of the shares to be offered in the IPO.
Cobalt Holdings has secured a six-year supply contract with Glencore, ensuring access to premium-grade cobalt worth up to $1bn, and a further agreement to acquire up to 1,500 tonnes (t) of cobalt from Anchorage in 2031.
The company’s initial purchase involves 6,000t of cobalt, worth around $200m, from Glencore at a discount to the current spot price.
Cobalt Holdings’ ordinary shares are planned to be admitted to the equity shares category of the official list of the Financial Conduct Authority (FCA) and to trading on the Main Market of the London Stock Exchange. The expected admission date is June 2025.
The offering positions Cobalt Holdings as the only company offering public equity investors pure-play direct exposure to the price of cobalt, a strategic raw material, without the risks and liabilities of cobalt exploration and mining operations.
The current oversupply in the cobalt market provides an opportunity to acquire cobalt below long-term average prices, especially with the anticipated demand surge from industries such as electric vehicle (EV) batteries, portable electronics and energy storage systems.
Cobalt Holdings CEO Jake Greenberg said: “Our strategy is simple: 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.
“We believe NOW is the right time to build a strategic stockpile of cobalt. The long-term price of cobalt has historically been well above the prevailing spot price. The DRC [Democratic Republic of Congo] has begun to impose export restrictions, reducing metal supply, while demand for cobalt more than doubled between 2015 and 2024, and is expected to rise by more than 54% between 2024 and 2031, primarily on the back of accelerating EV battery demand growth.
“We are delighted to have received the support of Glencore and Anchorage as cornerstone investors. Having two cobalt market experts partnering with us is a great validation of the merits of our strategy, timing and business model.”
Cobalt Holdings has committed to storing its cobalt in secure facilities across Belgium, the Netherlands, Singapore and South Korea to mitigate geopolitical risks and has insurance coverage for all metals in its care.
In April this year, Premier African Minerals signed a non-binding letter of interest with Glencore International regarding the potential sale of spodumene concentrate from its Zulu Lithium and Tantalum Project.
