Jiangxi Copper approves spin-off of copper foil unit for HK listing

Jiangxi Copper approved spinning off its 70.19%-owned subsidiary Jiangxi JCC Copper Foil for a Main Board listing in Hong Kong.

The board's approval follows the company's strategy to unlock value in its copper foil business, the company said in a filing.

The H shares to be issued will account for no more than 15% of Jiangxi JCC Copper Foil's total enlarged share capital. Subject to strong market demand, an over-allotment option may be exercised, with the greenshoe size proposed at no more than 15% of the initial offering size.

Jiangxi Copper shares fell 5.1% on the announcement day, with short selling reaching $56.2 million, representing 9.2% of turnover. The spin-off would create a separately listed vehicle for the company's copper foil operations, a key component in the EV battery supply chain.

Jiangxi Copper holds a 70.19% stake in the subsidiary. The listing venue is the Hong Kong Main Board, subject to regulatory approvals and market conditions. The company did not disclose the proposed offer price, deal size, or a target listing date.

The copper foil unit produces electrolytic copper foil used in lithium-ion batteries and printed circuit boards. The spin-off would allow the subsidiary to access capital markets independently and potentially attract strategic investors.

The spin-off gives Jiangxi JCC Copper Foil direct access to equity capital for capacity expansion in the EV battery supply chain. Investors will watch for the filing of the listing application and the indicative price range in the coming months.

This article is for informational purposes only and does not constitute investment advice.