update 1-china's ganfeng lithium prices hk listing at bottom of range - source - lithium battery suppliers
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Add details, background)
Julia Ferretti, Hong Kong, October 4Reuters)-
China's top producer of lithium-ion batteries, such as Tesla BMW, is selling at the bottom of the Hong Kong listing at a $0. 421 billion increase, according to sources involved in the deal.
The price of Ganfeng is HK $16. 50 ($2. 11)
The source said that each share is at the bottom of the indicative range of HK $16. 50 and HK$26. 50 ($2. 11-$3. 38).
The company declined to comment.
The weak price comes as the excess supply of lithium pushes prices down, although demand for metals is expected to increase as electric vehicles become more mainstream.
In Hong Kong, items are expected to be in the big and small years, but many people are still lower than their distribution prices and increase. U. S.
Tensions have weighed on market sentiment.
If a green shoe, the company can raise up to $0. 448 billion or more
Allotment, option exercised after the stock began trading on October. 11. The Shenzhen-
Listed companies earlier this year postponed plans to raise up to $1 billion in Hong Kong listings, as lithium prices dropped sharply due to a large number of new supplies, raising concerns about short-term supplyterm surplus.
But as Tesla, Volkswagen and other manufacturers push electric vehicles to the mainstream market, demand for lithium, the key ingredient of rechargeable batteries, is expected to grow over the long term.
As China, the world's largest car market, actively promotes electric vehicles to cope with air pollution and helps domestic automakers to build global brands beyond internal combustion engines, demand should also be significantly increased.
Last month, Mr. Ganfeng announced an agreement with Tesla to supply the electric vehicle maker's battery supplier with 20% of its annual output.
The agreement is valid until the end of 2020 and can be extended for three years.
It also attacked five.
A deal with BMW to offer lithium products to its battery makers.
Ganfeng plans to take advantage of Hong Kong-listed proceeds to acquire lithium resources and expand the production capacity of lithium metals, batteries, compounds and recycling.
The company received six cornerstone investors including China Structural Reform Fund, South Korean battery maker LG Chem and Samsung SDI, who jointly pledged to buy $229.
8 million shares. ($1 = 7.
HK $8348)(
Julia Fioretti reports;
Edited By Himani Saka Kirsten donowan and Adrian Croft)