Tianqi Lithium Raises USD 1.7 Bn in Hong Kong Secondary Listing

Author: Fuller Wang, Fortune Jul 07, 2022 10:59 AM (GMT+8)

According to its prospectus, its first lithium carbonate plant was built in 1992, Tianqi mines lithium in Australia and produces lithium compounds and derivatives in China.

lithium battery

Tianqi Lithium raised about HKD 13.5 billion (USD 1.7 billion) after pricing its Hong Kong secondary listing at the top of a marketed range, according to people familiar with the matter, in Hong Kong's largest listing this year. The Shenzhen-listed supplier of the key material used in batteries sold 164.1 million shares at HKD 82 apiece, according to a person who is familiar with the thing. The company had marketed the shares at HKD 69 to HKD 82 each. The Hong Kong share sale has drawn seven cornerstone investors that are set to snap up about 38% of the listing, the prospectus shows. Tianqi will start trading in the financial hub on July 13. Morgan Stanley, China International Capital Corp. and CMB International Capital Ltd. are joint sponsors of the offering.

The share sale breaks a months-long drought for large offerings in Hong Kong, where funds raised between January and June fell more than 90% from the previous year. The city has been hit even harder by the global slump than other exchanges, as central banks all over the world try to deal with surging inflation and spikes in volatility have put stock issuers on the sidelines. As the COVID-related lockdown in China ease and the country’s equities recover both at home and abroad, a successful listing by Tianqi could open the window for a pickup in Hong Kong offerings.

Tianqi sold a 49% stake in its Australian unit in 2020 to Perth-based IGO Ltd. for USD 1.4 billion to help repay an acquisition loan. The Kwinana lithium refinery near Perth, Australia — a joint venture between the company and IGO and the first lithium refinery outside China — delivered its first batch of battery-grade lithium hydroxide in May. Tianqi’s shares have risen about 50% in Shenzhen since June and touched an all-time high at CNY 148.57 on Wednesday, giving the company a market value of about USD 32 billion.