Cobalt Holdings Pulls Out of London Flotation Amid Investor Reluctance

Cobalt Holdings, a Glencore-backed group aiming to make one of London’s most significant stock market debuts in over a year, has withdrawn its flotation plans after struggling to secure sufficient investor interest. Initially intended to raise $230 million, or $2.56 per share, the move highlights ongoing challenges for London’s financial centre as it contends with a lack of new listings and increasing private equity acquisitions.

The company had planned to use $200 million of the proceeds to purchase 6,000 tonnes of cobalt from Glencore at slightly below market prices. However, during the book-building process, investor demand for the prospective initial public offering (IPO) fell short despite robust initial ambitions. Unconditional trading on the London Stock Exchange’s main market was originally scheduled to begin on June 10.

In a brief statement, Cobalt Holdings announced its decision not to proceed with its IPO. Market analysts attribute the failure to lingering global trade uncertainty, partly influenced by ongoing tariff conflicts between the US and China, as acknowledged in the company’s prospectus. Cobalt Holdings noted that these dynamics, combined with fluctuating cobalt valuations, created additional risks for the operation.

The company had intended to position itself strategically in response to a temporary suspension of cobalt exports by the Democratic Republic of the Congo, which currently produces around 75 per cent of the global supply. By acquiring and stockpiling the metal during a period of favourable pricing, Cobalt Holdings hoped to capitalise on anticipated demand growth for electric vehicles and energy storage solutions in the long term.

Glencore, the FTSE 100 commodities miner and trader, had committed to taking a 10 per cent stake in Cobalt Holdings. Meanwhile, US-based Anchorage Capital was expected to acquire a 9.5 per cent holding. Neither Glencore nor Anchorage Capital has commented on the withdrawal decision.

The venture was led by Jake Greenberg, who previously helped establish Yellow Cake, a uranium-focused investment vehicle. Greenberg may now look to secure private equity funding to achieve the company’s strategic objectives, potentially including the proposed cobalt acquisitions from Glencore. It remains to be seen whether alternative funding strategies will sustain the company’s long-term vision.