Shares of Tianqi Lithium fell as much as 10% in their Hong Kong market launching Wednesday prior to closing flat.
The stock fell as much as 11%, striking a low of 72.65 Hong Kong dollars ($ 9.25). It later on recuperated to close at its deal cost of HK$82 ($1045) a share.
The Chinese business raised about $1.7 billion in the city’s greatest listing up until now this year.
Tianqi Lithium, which was currently noted in Shenzhen, is among the world’s leading providers of rechargeable battery parts for electrical lorries.
“We are listed in China already and it is already a very good, big platform for financing. But it is limited in China,” Frank Ha, the executive director and CEO at Tianqi Lithium, informed CNBC’s “Streets Signs Asia” on Wednesday.
“We going into the Hong Kong market that is our strategy of crossing the globe. We need to make an international platform for financing. That’s why that we considered and then evaluate the situation. I think the current time is the best time that we can come here to list in the market,” he included.
The business offered 164.12 million shares in its secondary listing in Hong Kong, according to its regulative filings. The share sale breaks a monthslong dry spell for big offerings in Hong Kong, where funds raised in between January and June fell more 90% from the previous year.
Tianqi’s Hong Kong offering has actually drawn 7 foundation financiers that are set to buy about 38% of the listing, the prospectus revealed.
Tianqi Lithium’s outlook
Ha stated the electrical automobile market is revealing strength internationally and is not simply restricted to China.
“We can see that in Europe and in the other places in the world there is still very strong demand of EV,” he stated. Ha included electrical automobile need in the next 5 to 6 years is most likely to remain raised as more nations promise to end up being carbon neutral by 2050.
The existing market belief is rather difficult however offered principles of Tianqi Lithium, the business’s profits capacity is much better than others offered “very high lithium prices,” stated Dennis Ip, head of power and energies, at Daiwa Capital markets.
“Tianqi Lithium share price is very driven by the lithium compound prices as well,” he informed CNBC on Wednesday.
“We still think that lithium price will remain strong in the second half this year, but next year will be challenging,” as need can be impacted by the macroeconomic environment, he included.
