New Delhi: Ganfeng Lithium, one of the world’s leading lithium producers, said Friday that it will sell about HK $ 4.9 billion (US $ 630 million) in new shares to increase production capacity and fund potential investments.
The Chinese company announced an ambitious plan to increase its lithium production capacity by about five times to 600,000 tonnes of lithium carbonate equivalents per year in March, as demand for the product used in electric vehicle batteries rose sharply again after a three-year decline.
Ganfeng, which is listed on the Shenzhen and Hong Kong exchanges, said in the filing that it will offer just over 48 million new Hong Kong shares (H shares), equivalent to approximately 20% of existing H shares issued, at HK $ 101.35 apiece. Share.
This represents a 5% discount on the Hong Kong closing price on Thursday.
The company intends to use 80% of its HK $ 4.85 billion net revenues to expand production capacity, mainly for its overseas lithium projects and potential investment in lithium resources. The remaining 20% is intended for replenishment of working capital and general corporate purposes.
“The company plans to use the net proceeds over the next one to two years,” Gangfeng said, adding that the shares will be offered among at least six investors.
Banks CLSA, Merrill Lynch, UBS and Citigroup Global Markets have been named as placement agents.