After a quick read of the announcement I would make the following comment. "BNP Parabas and Morgan Stanley appointed as bookrunners" suggests that new stock will be issued as part of the listing. So it appears the company intends to raises additional funds to finance the move into the production of ebike batteries. On first impression this looks to be a positive move (much higher margins for sure) offset of course by the argument that company's should 'stick to their knitting'. There are however companies that have done very well by vertical integration - GE for example.
GXY Price at posting:
49.5¢ Sentiment: LT Buy Disclosure: Held
