On September 13, 2021, Tianqi Lithium's board of directors unanimously approved a proposal to issue H shares and list its shares on the Hong Kong Exchanges.
Tianqi Lithium will issue up to 20 percent of its total issued share capital on the Hong Kong Exchanges and allow underwriters to allocate an additional 15 percent of shares at the same offering price for 30 days after the date of listing. The final issuance quantity shall be determined by the board of directors or the person authorized by the board of directors authorized by the general meeting of shareholders in accordance with legal provisions, regulatory approvals and market conditions. The proceeds from the listing will be used to pay off the debt, expand capacity and replenish operating capital, while the specific use of raised funds and investment plan are subject to the H-share prospectus.
Frank Ha, the Director and President of Tianqi Lithium, said that the issuance and financing of H shares is of great significance to the company's development. First of all, the issuance of H-shares for equity financing will help the company further optimize its
capital structure and reduce financial risks, while reducing financial expenses and enhancing profitability. Secondly, benefiting from the rapid development of the downstream market, the demand for our products is strong. H-share issuance will help the company seize industry opportunities and further develop our core business. Thirdly, the issuance of H shares will help the company expand overseas financing channels, further enhance our international reputation and influence, and lay a solid foundation for the company to continue to implement its international strategy in the future.