BEIJING: Chinese nickel producer and trader Lygend Resources is aiming to raise around US$600 million (RM2.73 billion) in a Hong Kong initial public offering (IPO), according to its prospectus published on Nov 21.
The Ningbo-based firm is selling 232.54 million shares in the deal in a price range of HK$15.60 (RM9.07) to HK$19.96 each, its listing documents show.
Lygend is aiming to raise US$463 million to US$592 million and the final price will be set on Thursday.
The company also said 56% of the IPO’s proceeds would be used for the development and construction of nickel production projects on Indonesia’s Obi Island.
It also plans to contribute additional capital to a joint venture it has with Contemporary Amperex Technology Co Ltd focused on developing products on the electric vehicle (EV) battery value chain.
At the upper end of the price range, Lygend would be valued at HK$30.94 billion, assuming a so-called greenshoe option to sell an extra 34.89 million shares is not exercised.
The stock is due to start trading on the Hong Kong Stock Exchange on Dec 1.
Lygend says it is the world’s largest nickel product trader and the largest in China in terms of nickel ore trading in 2021, with a market share of 26.8% in 2021. - Reuters
