Tianqi Lithium is here!Hong Kong stocks may welcome the largest IPO this year

[Global Times Reporter Zhao Juezhen] China Tianqi Lithium, the world's largest lithium lithium lithium producer, announced this week that it will be listed on the Hong Kong Stock Exchange. IPO (first public offering). The Wall Street Journal states that in the case of the global IPO downturn, Tianqi Lithium has no fear of market fluctuations and will test the interest of global investors in the stock of new energy companies. As of the close of the 22nd, Tianqi Lithium's A shares closed up 0.5%, with a stock price of 114.96 yuan, and a market value of nearly 170 billion yuan.

On the 19th of this month, Tianqi Lithium heard and updated the issuance information through the Hong Kong Stock Exchange. On the 3rd of this month, Tianqi Lithium issued an announcement saying that it was approved by the China Securities Regulatory Commission on June 2, 2022, and approved the company's issuance of no more than 425 million foreign listed foreign stocks.

Tianqi Lithium has previously been listed in Shenzhen in 2010 and also applied for listing in Hong Kong in 2018, but the transaction has been put on hold since then. Public information shows that Tianqi Lithium Industry's products mainly involve lithium concentrate products, lithium compounds and derivative products. According to the data released by Energy Research and Consulting Company Wood McCanz, according to the output of 2021, Tianqi Lithium is the fourth largest and second largest lithium compound producer in the world, with market share accounting for 7%and 12%, respectively. In addition, the company is the world's second largest battery -level lithium carbonate supplier and one of the top ten battery -level lithium hydroxide suppliers in the world.

Tianqi Lithium is well known to the capital market because of the "sky -high acquisition". In 2018, Tianqi Lithium acquired 23.77%of Chile's Mining Chemical (SQM) of $ 4.07 billion. According to media reports, this huge acquisition also brings huge amounts of financial expenses to Tianqi Lithium. As of June 10, 2022, Tianqi Lithium Industry's total principal of the uncomfortable repayment of SQM debt was approximately US $ 1.13 billion.

"Tianqi Lithium is trying to complete a large -scale financing when the global IPO demand is sluggish." The Wall Street Journal said that the inflation rate in the United States has soared, interest rates rose rapidly, Russia and Ukraine conflicts, and uncertainty of global economic prospects. This Everything encourages the selling wave of global stocks and reduces the circulation of new shares. Data from the research institution Dealogic show that the listing and second listing of new shares in Hong Kong have raised a total of 2.4 billion US dollars since the beginning of the year, a significant decline in the same period last year. However, Tianqi Lithium's IPO in Hong Kong shows that Hong Kong stocks are still attractive. The research report released by Deloitte China on the 22nd predicts that although the Hong Kong stock market IPO performance will slow down this year, about 70 new shares are expected to be listed throughout the year.

Liang Haiming, Dean of the Silk Road Zhigu Research Institute, told the Global Times reporter on the 22nd that Hong Kong has completed the feasibility study of the introduction of RMB to the south of the Hong Kong Stock Connect, which will launch preparations and negotiate with the mainland regulatory authorities. If the RMB Hong Kong Stock Connect can be started as soon as possible, this move will not only attract more mainland funds precipitation, but also help improve the liquidity and transaction activity of Hong Kong stocks. Liang Haiming believes that the market generally believes that the state will continue to support Hong Kong and consolidate and develop Hong Kong's position as an international financial center. "I am more optimistic about the IPO situation in the Hong Kong stock market in the second half of the year."

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