Reuters: IPOX® Research Associate Lukas Muehlbauer Comments on Londian Wason’s U.S. IPO

Chinese copper foil manufacturer Londian Wason New Energy Tech is seeking a valuation of up to $1.7 billion in its U.S. IPO. The Shenzhen-based company plans to raise as much as $78.6 million by offering approximately 3.6 million American Depositary Shares priced between $20 and $22 each. The shares are expected to list on the NYSE under the ticker “FOIL”.

The offering could provide an important indication of investor demand for Chinese companies seeking U.S. listings. Chinese IPO activity in New York has slowed amid heightened geopolitical tensions and increased regulatory scrutiny of offshore listings. Londian Wason, which supplies electrolytic copper foil used in battery applications, received approval from the China Securities Regulatory Commission for the proposed listing in December.

IPOX® Associate Lukas Muehlbauer provided Reuters with analysis of the offering’s significance, noting that its relatively modest size limits its ability to signal a broader reopening of the market. He also highlighted the company’s exposure to growing battery demand, improved recent financial performance and customer-concentration risk.

“The offering itself is relatively small compared with the larger Chinese deals seen in previous years, which means a successful debut would be encouraging rather than a definitive reopening of the market,” IPOX® Research Associate Lukas Muehlbauer said.

“The business is benefiting from growing battery demand and has recently returned to stronger growth and profitability, but investors will watch its reliance on a few large customers.”

Read the full article by Arasu Kannagi Basil on Reuters: Chinese copper foil giant Londian Wason eyes $1.7 billion valuation in US IPO