Tinci Materials targets up to US$500m in downsized Hong Kong listing
Chinese chemicals maker Guangzhou Tinci Materials Technology aims to raise US$400m to US$500m in a Hong Kong listing, a lower target than previously reported. The Shenzhen-listed firm seeks proceeds for global expansion, including a lithium-ion battery project in Morocco.
Chinese fine chemicals maker Guangzhou Tinci Materials Technology aims to raise between US$400 million and US$500 million in a Hong Kong listing, according to the International Financial Review. The target is lower than the previously reported range of US$500 million to US$700 million.
The Shenzhen-listed company has begun sounding out investor interest in the share sale, the report said, after it cleared its listing hearing. Earlier, Tinci Materials received approval from the China Securities Regulatory Commission, planning to issue no more than 410 million H shares and list on the main board of Hong Kong's market.
The materials company specialises in new energy materials and advanced materials, primarily providing comprehensive lithium-ion battery materials as well as daily chemicals and specialty chemicals solutions, according to its prospectus.
For the first six months of the year, the company's net profit surged 974.4 per cent year-on-year to 2.85 billion yuan (HK$3.34 billion), while revenue jumped 109.3 per cent to 14.7 billion yuan during the period. Its Shenzhen-listed shares have dropped 35 per cent so far this year.
Net proceeds from the listing will be mainly used for supporting its global business development, including the lithium-ion battery materials project in Morocco, and for upstream resource investments globally, the firm said. JP Morgan, CITIC Securities, and GF Capital are joint sponsors.