On charge

2 March 2018 By Clara Ferreira Marques

Ganfeng Lithium is coming late to the electric vehicle party. The Chinese miner and battery maker wants to raise at least $1 bln in Hong Kong as competition to make power cells intensifies and prices are peaking. Investors will want to know it isn’t just cashing out at the top.

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China's Ganfeng Lithium, a Shenzhen-listed lithium producer, has filed an application to list in Hong Kong.

The company, whose billionaire founder Li Liangbin is the main shareholder, plans to raise at least $1 billion in the second quarter, according to IFR, a Thomson Reuters publication, selling up to 20 percent of its enlarged capital. The fundraising could reach $1.9 billion.

The group reported 1.57 billion yuan ($249 million) in profit before tax for the nine months to the end of September, up over 52 percent. It reported a net profit margin of 50.7 percent, above 42.5 percent for the 2016 full year.

Ganfeng plans to use the listing proceeds to fund investments, acquisitions and to expand production capacity; to support Toronto-listed Lithium Americas, in which it invested last year; to fund research and also to pay down debt. Citigroup is the sole sponsor.

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