Get 40% Off
💰 Buffett reveals a $6.7B stake in Chubb. Copy the full portfolio for FREE with InvestingPro’s Stock Ideas toolCopy Portfolio

Tianqi Lithium aims to raise up to $2 billion in Hong Kong listing -sources

Published 06/29/2022, 04:55 AM
Updated 06/29/2022, 07:32 AM
© Reuters. FILE PHOTO: An aerial view shows the brine pools and processing areas of the Soquimich (SQM) lithium mine on the Atacama salt flat in the Atacama desert of northern Chile, January 10, 2013.REUTERS/Ivan Alvarado/File Photo

By Scott Murdoch and Julie Zhu

HONG KONG (Reuters) -China's Tianqi Lithium Corp will sell its shares for between HK$69 and HK$82 ($8.79-$10.45) each for a Hong Kong listing which could raise up to $2 billion, said two sources with direct knowledge of the matter.

Tianqi, one of the world's top producers of lithium chemicals for electric vehicle batteries, plans to sell about 164.12 million shares in what would be the city's largest share sale in 2022, said one of the sources.

If a 15% greenshoe, or over-allotment option, is exercised, the Shenzhen-listed company could raise between $1.66 and $1.97 billion, the sources said.

Tianqi plans to open the books from Thursday to July 6, and debut in Hong Kong on July 13, said the first source.

The sources could not be named as the information was not yet public.

Tianqi did not immediately respond to a request for comment

Tianqi's float will help revive Hong Kong's banking market with the city's deal volumes flattened by volatile global financial markets.

There has been just $2.2 billion worth of initial public offerings and secondary listings in Hong Kong so far this year, down from $30.27 billion at the same time in 2021, according to Refinitiv data.

Tianqi, which is based in Chengdu, announced on Tuesday it had signed a contract to sell lithium to LG Chem Ltd.

Lithium prices have soared in the past year, despite some volatility caused during Shanghai's lockdown, on sustained global demand for electric vehicles.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Prices have risen by nearly 120% in 2022 and are up 400% year on year, according to Benchmark Mineral Intelligence.

A listing now would be Tianqi's second attempt at a deal in Hong Kong, after it withdrew a planned float in 2018 due to weaker market conditions at the time.

($1 = 7.8473 Hong Kong dollars)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.