Deep sea mining puts $560 billion in land extraction at risk — report
Even in optimal scenarios, the activity would generate only $6.25 million in tax revenue for countries involved, says Planet Tracker.
Chinese nickel producer and trader Lygend Resources aims to raise around $600 million in a Hong Kong initial public offering (IPO), as per its prospectus published on Monday, setting it up to be the financial hub’s fourth-largest IPO this year.
The Ningbo-based firm will sell 232.54 million shares in a price range of HK$15.60 to HK$19.96 each, and aims to raise $463 million to $592 million. It will set the final price on Thursday.
Lygend’s IPO comes against the backdrop of a bleak year for new share sales in Hong Kong, with $5.74 billion raised via IPOs so far in 2022 — the lowest in a decade — according to Refinitiv data.
The biggest IPO fundraising so far this year has been CALB’s $1.28 billion issue.
Lygend plans to use 56% of the proceeds for the development and construction of nickel production projects on Indonesia’s Obi Island.
It also aims to contribute additional capital to a joint venture it has with Contemporary Amperex Technology Co Ltd focused on developing products on the electric vehicle (EV) battery value chain.
At the upper end of the price range, Lygend would be valued at HK$30.94 billion ($3.95 billion), assuming a so-called greenshoe option to sell an extra 34.89 million shares is not exercised.
The stock is due to start trading on the Hong Kong Stock Exchange on Dec. 1.
The company says it is the world’s largest nickel product trader and the largest in China in terms of nickel ore trading in 2021, with a market share of 26.8% in 2021.
($1 = 7.8232 Hong Kong dollars)
(By Scott Murdoch; Editing by Uttaresh.V)
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