Tianqi Lithium Shares Slide on Fundraising Plan

By Megan Cheah

Hong Kong-listed shares of Tianqi Lithium tumbled to a three-month low on the company's decision to place H shares at a discount as part of its plans to raise around US$750 million.

The stock, which resumed from a one-day trading halt, fell as much as 14% in Thursday trade to 42.70 Hong Kong dollars, equivalent to US$5.47, before paring losses to HK$43.32.

Its Shenzhen-listed shares fell 5.5% to 49.88 yuan.

The Chinese lithium producer said in a stock exchange filing on Wednesday that it aimed to place 65.05 million H shares at HK$45.05 each, a 9.0% discount to Tuesday's closing price of HK$49.50.

It also planned to issue CNY2.6 billion of zero-coupon, U.S. dollar-settled convertible bonds due 2027 with a conversion price of HK$49.56 a share.

Tianqi Lithium intends to use the proceeds to fund its development in the lithium sector. Proceeds would also be used to acquire high-quality lithium mine assets and replenish working capital, it said.

Lithium chemicals are essential for making lithium-ion batteries used in electronics and electric vehicles.

China's lithium carbonate inventory has been decreasing since last year amid robust downstream demand, said DBS Group Research analysts in a commentary. Lithium companies are likely to build new capacity this year, which would require higher capital expenditure.

Tianqi's fundraising plans would allow it to cope with the potential rise in capex, the analysts added. DBS has a HK$77.0 and CNY77.0 target price on Tianqi's Hong Kong and Shenzhen-listed stocks, respectively.

Write to Megan Cheah at megan.cheah@wsj.com

(END) Dow Jones Newswires

February 05, 2026 01:47 ET (06:47 GMT)