HK Stock Market Move | Tianqi Lithium Corporation (09696) resumes trading and plunges more than 9% as it plans to raise over HK$5.8 billion through rights issue and convertible bonds.

Tianqi Lithium Corporation (09696) resumed trading and plummeted by over 9%. As of the time of writing, it has dropped by 9.13% to HK$44.98, with a trading volume of HK$74.6883 million. On the news front, Tianqi Lithium Corporation announced that it plans to issue 65.05 million new H shares and issue US dollar-settled zero-coupon convertible bonds with a total principal amount of RMB 2.6 billion due in 2027, expected to raise a total amount of approximately HK$5.891 billion, with a net amount of approximately HK$5.8306 billion. These funds will be used to support the strategic development of the company and its subsidiaries in the lithium field, including capital expenditures required for project development and optimization, as well as acquisitions of high-quality lithium mining assets, with the rest used for supplementary operational funds and general corporate purposes. Regarding the general authorization to issue new H shares, the company has entered into a revised and restated placing agreement with the placing agent at a placing price of HK$45.05 per share, representing a discount of approximately 9% from the last closing price of HK$49.5 per H share on the Hong Kong Stock Exchange on February 3, 2026 (the last trading day before signing the revised and restated subscription agreement). Assuming all 65.05 million placing shares are fully placed, the total amount raised is expected to be approximately HK$2.9305 billion, with a net amount of approximately HK$2.924 billion. Furthermore, with regards to the proposal to issue US dollar-settled zero-coupon convertible bonds due in 2027 simultaneously, the company has entered into a revised and restated subscription agreement with the underwriter. The company will issue bonds totaling RMB 2.6 billion, with an initial conversion price of HK$51.85 per H share, representing a premium of approximately 4.7% from the last closing price of HK$49.5 per H share on the Hong Kong Stock Exchange on February 3. These bonds can be fully converted into 564.819 million H shares. The total amount expected to be raised from the bond issuance is approximately HK$2.9286 billion, with an estimated net amount of approximately HK$2.9066 billion.