Sunwoda Electronic eyes European capital via Swiss GDR listing

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Linklaters, Shu Jin Law Firm, Niederer Kraft Frey, Jingtian & Gongcheng and Freshfields assisted parties in lithium battery maker Sunwoda Electronic, raising USD440 million on its global depository receipts (GDR) listing in Switzerland.

As each GDR is equivalent to five A shares in this case, the Shenzhen-listed company issued 28.759 million shares, occupying 8.4% of its total A shares, almost reaching the maximum ratio approved by Chinese regulators.

The size of Sunwoda’s IPO increased by nearly 50% from the initial USD300 million proposed, which had signalled strong demand from overseas investors.

Compared with EV battery giants CATL and BYD, Sunwoda Electronic remains in the second tier of the market in China, which includes Gotion High-tech and CALB. Gotion High-tech was among the first batch of companies to seek GDR financing on the SIX Swiss Exchange in July, while CALB is the third-largest Hong Kong IPO so far this year.

Linklaters and Shu Jin Law Firm acted as counsel to Sunwoda Electronic. Partner Lipton Li led the Linklaters team with support from partner John Xu. The Shu Jin team involved senior partner Ren Baoming and partner Wang Qian.

Niederer Kraft Frey, Freshfields and Jingtian & Gongcheng advised the underwriters Goldman Sachs International and UBS.

The Niederer Kraft Frey team was co-led by corporate/capital markets partner Philippe Weber and capital markets partner Daniel Bono.

The Freshfields team was led by Richard Wang, partner and head of China equity capital markets, and partners Howie Farn and Simone Bono.