Chinese copper foil manufacturer Londian Wason Energy Tech is planning to launch an initial public offering (IPO) in the US, according to local reports, to strengthen its position in the global electric vehicle (EV) battery supply chain.
According to unnamed sources, the Shenzen based company is being advised by Citigroup and Goldman Sachs on its planned listing which is expected to take place next year.
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It aims to raise around US$500m through the IPO and a pre-IPO funding round. The precise financial details and timing are still to be decided.
The company has enjoyed strong demand for copper foil in recent years from key EV battery customers including Contemporary Amperex Technology (CATL) and BYD – the world’s two largest battery manufacturers.
South Korean industrial conglomerate SK Group, the world’s largest producer of copper foil through its SK Nexilis subsidiary, is said to wanting to sell its 30% stake in Londian Wason Engery which is valued at KRW1.5trn (US$1.1bn).
SK Nexilis this year announced aggressive global expansion of its own, aiming for global capacity of 250,000 tons of foil per year by the second half of the decade. In addition to South Korean factories, the company is building a plant in Malaysia scheduled for completion towards the end of this year, a factory in Poland expected to be operational in 2024 and a plant in Canada by 2025, all to supply EV battery manufacturers in each of these regions.
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