Tianqi Lithium Revives Plan to List in Hong Kong
What’s new: China’s Tianqi Lithium Corp. (002466.SZ), the world’s top producer of the metal by output, disclosed Tuesday that has a revived a 3-year-old plan to list in Hong Kong.
Tianqi plans to issue shares equal to up to 20% of the company’s total issued share capital, according to a filing (link in Chinese) to the Shenzhen Stock Exchange. It will use the fresh capital to increase capacity, cover operating costs and pay back debt, including the money it borrowed in 2018 to buy a 23.77% stake in the New York-listed Chilean lithium giant Sociedad Quimica y Minera de Chile S.A.
What’s the background: It was that year that the Southwest China-based company planned to raise up to $1 billion on the Hong Kong Stock Exchange. However, the company’s chairman called off (link in Chinese) the listing after a drop in the price of lithium sank its valuation at the time.
In recent months, lithium prices have surged due to growing demand for new-energy vehicles, as lithium is a key raw material for electric-car batteries. In the first half of this year, Tianqi’s net profit attributable to its parent company more than doubled from the previous year to 85.8 million yuan ($13.3 million). During that period, its lithium chemical sales increased by 36.44% year-on-year.
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