BRIEF: Ganfeng Lithium to raise $322 million by selling shares, convertible bonds

Lithium producer Ganfeng Lithium Co. Ltd. (1772.HK; 002460.SZ) announced on Tuesday that it plans to raise HK$2.52 billion ($322 million) through a combination of selling shares and convertible bonds. It will use the funds to repay loans, expand capacity and for working capital replenishment and general corporate purposes.

Under the plan, the company will issue 40 million new Hong Kong-listed shares, representing 9.02% of its enlarged H-share capital and 1.95% of its enlarged total issued share capital. The placement price is HK$29.28 per share, representing a discount of 5.49% to the previous closing price of HK$30.98, raising net proceeds of about HK$1.17 billion.

Separately, the company will issue HK$1.37 billion in convertible bonds due in 2026, carrying an annual coupon rate of 1.5%. The initial conversion price was set at HK$33.67 per share, representing an 8.68% premium to the previous closing price, convertible into a maximum of 40.7 million Hong Kong-listed shares, or 9.16% of the enlarged H-share capital and 1.98% of the enlarged total issued share capital. Net proceeds from the bond issue are expected to total HK$1.35 billion.

The company reported revenue of 8.26 billion yuan in the first half of this year, down 13.3% year-on-year, while its net loss narrowed to 536 million yuan from 759 million yuan a year earlier.

The company’s stock opened lower on Tuesday and closed at HK$30.08 by the midday break, down 2.91%.

By Lee Shih Ta

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