Tianqi Lithium raises HKD13.5bn as the biggest HK IPO in 2022

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Tianqi Lithium raises HKD13.5bn as the biggest HK IPO in 2022

One of the world’s top suppliers of rechargeable battery components for electric vehicles, Tianqi Lithium, debuted on the HKEX in the largest share sale in the Asian financial hub to date this year. Latham & Watkins, Zhong Lun Law Firm, Clayton Utz and Carey Abogados were listing advisers.

Tianqi Lithium raised HKD13.5 billion (USD1.7 billion) in a secondary listing on the Hong Kong bourse in July. It had already been listed in Shenzhen in August 2010.

Tianqi Lithium’s developments benefit from a global trend to promote the use of electric vehicles in a bid to cut down carbon emissions from fuel vehicles. Lithium is a core element of green batteries.

The share sale was oversubscribed, with cornerstone investors including high-profile South Korean chemical company, LG Chem, and state-owned China Aviation Lithium Battery.

Tianqi’s prospectus said 70% of the funds raised from the listing would be used to repay debts, which included USD3.5 billion in syndicated loans from the acquisition of the world’s second-largest lithium producer, Chilean company Sociedad Quimica y Minera, and fees from its Western Australian investment in Talison Lithium.

Latham & Watkins advised on Hong Kong and US laws. Zhong Lun Law Firm, Clayton Utz and Carey Abogados advised on PRC, Australian and Chilean laws, respectively.

The Latham & Watkins team was led by Hong Kong partners Howard Lam, Cathy Yeung, and Terris Tang, with support from partner Benjamin Su, counsel Wang Zheng, and associates Carson Wong, Mia Gu, Jovi Cheng, and Duan Ruonan.

Partners Fan Bin, He Yunfan, Wen Zexiong and Meng Conghui led the Zhong Lun team. Associates Li Xinyue, Liu Zhipeng, Liu Zhiguang and partner Shirley Lu also assisted in the deal

The Clayton Utz team was led by partners Brett Cohen and Liz Humphry, with assistance from special counsel Armin Fazely and lawyer Luke Crofts checked.

The listing underwriters, such as Morgan Stanley, CICC, CMB international and five others, turned to Clifford Chance in Hong Kong and US laws, JunHe in PRC law and Allens in Australian law.

Clifford Chance’s partners Fang Liu and Xiang Tianning co-led the deal, with support from the Greater China team, including counsel Chen Sheng and Wu Hao, senior associate Joy Chen and associates Ada Zheng and Li Yaping. New York partner Jefferey LeMaster provided additional US capital markets support.

JunHe’s partner Yu Yongqiang led the transaction, with support from partner Shi Yun and Yi Yisong.