World

China firms from pharma to tools join Swiss GDR frenzy, sources say

Chinese companies are doling out mandates to investment banks for share sales in Switzerland, encouraged by the relative success of firms capitalizing on an expanded link between stock exchanges in Asia and Europe.

At least four firms with listings in China are working with advisers to issue global depositary receipts on the SIX Swiss Exchange as soon as this year, according to people familiar with the matter, who asked not to be identified as the information is private:

Company Industry Primary Listing GDR Fundraising Target
Hangzhou Greatstar Industrial Co. Hand and power tools maker Shenzhen $300 million to $400 million
Shenzhen Senior Technology Material Co. Battery component maker Shenzhen $300 million to $400 million
Fangda Carbon New Material Co. Carbon and graphite product producer Shanghai $400 million
Joincare Pharmaceutical Group Industry Co. Drug manufacturer Shanghai $350 million

 

Chinese energy drink maker Eastroc Beverage Group Co. has selected China International Capital Corp. and Goldman Sachs Group Inc. for a potential Switzerland share sale that could raise about $500 million, Bloomberg News reported last week.

Deliberations are ongoing and details including size and timeline could still change, the people said. Representatives for Hangzhou Greatstar, Shenzhen Senior Technology, Fangda Carbon and Joincare didn’t immediately respond to requests for comment by phone and email.

Chinese companies are turning to Switzerland in the hopes of raising funds from overseas investors as geopolitical tension, policy tightening and a global slump in initial public offerings all make conventional listings abroad increasingly difficult. Five of China’s largest state-owned companies announced on Friday plans to delist from US exchanges.

China’s securities regulator said in February that the Shanghai-London Stock Connect, which allows companies that are listed on one exchange to offer depositary receipts on the other, would be extended to include firms listed in Switzerland, Germany and Shenzhen.

The first wave saw four Chinese firms raise about $1.5 billion in total via Swiss GDR sales last month, including offerings for battery makers GEM Co. and Gotion High-Tech Co. While the debuts opened the gate for more sales of the depositary receipts, they were met with very light trading volume. –BLOOMBERG

Dayang Norazhar

Recent Posts

Audi’s flagship RS SUV races into Malaysia from RM1.7m

The power of an RS model, with the elegance of a premium coupe and the…

9 mins ago

New Land Rover Defender 90 comes with all-terrain capabilities

by TMR / pics source Jaguar Land Rover Malaysia DO YOU love going off-roading? If…

22 mins ago

Conduct trial in court not in public, Sri Ram told Najib’s lawyer

KUALA LUMPUR – Senior deputy public prosecutor Datuk Seri Gopal Sri Ram today warned Datuk…

23 mins ago

Local banks to ride on OPR hike

by IFAST RESEARCH TEAM / pic TMR GRAPHIC IN THE latest monetary policy statement, Bank…

33 mins ago

South Korea’s Naver to buy US e-commerce site Poshmark

SEOUL – South Korean internet giant Naver is buying Poshmark, a US online marketplace for…

51 mins ago

Re-imagining the governance of GLICs

Given their size and roles in our society, GLICs should be governed and managed on…

52 mins ago