According to people with knowledge of the matter, two Chinese companies plan to begin taking investor orders for their global depository receipts in Switzerland as soon as Friday.
Building materials manufacturer Keda Industrial Group Co. and a battery materials maker are going to open their books to the public on Friday.
The people asked not to be identified as the information is private, said that the Chinese securities regulators have given the go-ahead to raise between $700 million and $1 billion in the GDR issue. Keda wants at least $200 million to $300 million from the sale.
Gotion High-Tech is considering taking investor orders for its Swiss GDR sale. The Shenzhen-listed battery maker is planning to sell shares in order to raise money.
The people said that details of the offerings could change as deliberations continue. Details of the listing, including advisers, will be included in the exchange filing, according to a representative for the company. Gotion and Keda representatives didn't reply to requests for comment.
China is going to court foreign firms for cross border listings.
The stock connect, which allows companies that are listed on one exchange to offer depository receipts on the other, will be expanded to include firms listed in Switzerland, Germany and Shenzhen.
The GDR listings offer a sought-after opportunity for Chinese companies to raise funds overseas as US listings have been frozen amid heightened tensions in the region. A similar GDR offering in London was used to raise $707 million for the Chinese wind turbine maker.
According to a report last month, the company is working with a securities firm.
Evelyn Yu and Annie Lee assisted.
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