PERTH (miningweekly.com) − Lithium developer Galaxy Resources has postponed its initial public offering (IPO) on the Hong Kong stock exchange (SEHK), owing to unfavourable financial market conditions.

ASX-listed Galaxy initially planned a secondary listing on the SEHK by the end of the current quarter, after shareholders voted in favour of the listing in December.

However, MD Iggy Tan said on Monday that while the company was disappointed in having to delay its Hong Kong IPO, it was deemed as prudent in light of serious international events, and related market volatility.

“Given the company’s strong financial position, we saw no necessity to launch the IPO in a market environment that would not serve the interest of existing shareholders, or deal participants,” Tan said.

“We are strongly focused on listing in Hong Kong and will proceed when we believe the time is right.”

Tan has previously said there was a strong appetite for lithium investment from the Chinese market, as well as other international investors.

Tan believed that the Hong Kong listing would provide a platform for growth and would position Galaxy as one of the largest and lowest cost lithium carbonate producers in China.

Galaxy owns the Mount Cattlin mine, in Western Australia, which is currently producing spodumene concentrate. The company also owns the Jiangsu lithium carbonate plant, which would have a 17 000 t/y capacity, once completed.


 

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