Freshfields advises on US$423.5m IPO of Ganfeng LithiumFreshfields Bruckhaus Deringer ('Freshfields') has advised the underwriting syndicate led by the Joint Global Co-ordinators, Citigroup Global Markets Asia Limited, China International Capital Corporation Hong Kong Securities Limited and Deutsche Bank AG, Hong Kong Branch, for the IPO of Ganfeng Lithium Co., Ltd. (‘Ganfeng Lithium’) on the Hong Kong Stock Exchange. The listing has raised US$423.5 million (before the over-allotment option is exercised). Shares started trading today (11 October 2018).
Ganfeng Lithium is currently the world’s third-largest and China’s largest lithium compounds producer and the world’s largest lithium metals producer. Recently, Ganfeng Lithium signed a strategic cooperation agreement with Tesla, committing 20 per cent of Ganfeng Lithium’s lithium hydroxide capacity until 2020 to Tesla with the option to extend for another three years. Ganfeng Lithium has also signed long-term supply agreements with LG Chem for 85,600 tons of lithium hydroxide from 2019-2025 and 7,000 tons of lithium carbonate from 2019-2021. It intends to use the majority of the proceeds of the IPO to fund the exploration, investment in and acquisition of upstream lithium resources and expand its production capacity for lithium compounds, lithium metals, lithium batteries and lithium recycling.
The Freshfields team advising on the deal was led by the head and deputy head of China equity capital markets Richard Wang and Yan Chen.
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