CRU was approached by Ganfeng – one of the largest global lithium chemical producer - to provide the Industry Report for their IPO prospectus for a listing on the Hong Kong Stock Exchange (HKEX).
CRU worked closely with and guided the Company and the Sponsor team throughout the lengthy IPO process to deliver the Lithium Industry Overview section of the prospectus.
Methodology
The Industry Overview Report draws upon CRU’s expertise in lithium and the electric-vehicle value chain through CRU’s regular coverage in the Lithium Market Outlook and our internal long-term global fleet model forecasting vehicle sales to 2050. More importantly, our team has built up a web of key industry contacts in the main lithium producing (Chile, Argentina, Australia and China) and consuming regions (China, Japan, Korea, the USA and Europe), which we leverage on to support our analysis and forecasts.
The Industry Report included historical and forecasts data on the lithium raw material and lithium chemicals market, global positioning of Ganfeng across different indicators, cost positionings and discussions on the key barriers to entry in the lithium upstream supply chain. CRU also responded to questions from the HKEX on the draft edition of the Industry Overview, assisted the Sponsor's lawyers with their validation processes, reviewed and made recommendations on how CRU Report is mentioned in other parts of the Prospectus.
Outcome
Ganfeng was listed on the HKEX on 11th November 2018 with a total offering size of HK$3.3 billion (approximately US$423.5 million). This was also the first lithium IPO on the HKEX. The IPO also secure six cornerstone investors ahead of the listing which includes key players in the lithium-ion battery supply chain including Samsung SDI and LG Chem.
This IPO demonstrates CRU’s deep understanding of the Chinese and global lithium market, reflects our understanding of the listing procedures and our capability to collaborate with the relevant IPO stakeholders.
