On 28 July 2022, Chinese pioneer power battery manufacturer Gotion High Tech's Global Depositary Receipts (GDRs) were listed on the SIX Swiss Exchange, being among the first batch of China-listed issuers to debut under the China-Europe Stock Connect programme which is the expansion of the Shanghai-London Stock Connect and it has extended to Switzerland and Germany.
Gotion issued 22,833,400 GDRs, representing 114,167,000 A shares and priced at USD 30 per GDR. The total amount of funds raised is USD 685 million.
The record-breaking listing is among the first since China's capital market further opened up via its new rules on multiple Stock Connect programmes in February 2022. The new rules encouraged Chinese listed companies to expand into Swiss and German stock exchanges and shed light on optimized regulatory domestic requirements.
Gotion High Tech's listing is by far:
The biggest GDR placement in the Swiss Exchange since the new rules on multiple Stock Connect programmes issued in February 2022
One of the first batch of the GDRs by Shenzhen Stock Exchange-listed company
The biggest equity financing project in the renewable energy sector in history in the Swiss market
The biggest equity financing project overall sectors in the Swiss market this year
Gotion High Tech, being an industry-leading supplier of power batteries, thrives on the international stage and continued with significant growth along with the strategic partnership with multinational companies including Volkswagen, JinkoSolar and TATA technologies. The listing celebrates China's regulatory framework of Cross-border Stock Connect and its vision for a more established relationship with foreign capital markets, supporting the globalisation of Chinese companies and the flow of cross-border capital.
Llinks' team acted as the Chinese legal counsel for Gotion High Tech and advised on the GDR placement under the China-Switzerland Stock Connect scheme, in furtherance of its long-term support of Gotion's domestic capital market transactions as well as its strategic transaction with Volkswagen etc.
