Nickel Products Supplier To EV Industry Poised To Become China’s Newest Billionaire

Lygend Resources & Technology, China’s largest nickel ore trading company, launched an IPO in Hong Kong today that seeks to raise up to HK$4.6 billion, or approximately $595 million. If successful, it would add a new billionaire in China, already home to the world’s second-largest number of billionaires after the United States.

Lygend seeks to sell 232.5 million shares for up to HK$19.96 each, according to the prospectus. Funds raised will be used to finance a project in Indonesia and joint venture with CATL, the world’s largest supplier of batteries for electric vehicles. (See prospectus here.)

Lygend Chairman Cai Jianyong directly owns 416.7 million shares, along with 88% of Lygend Investment, which holds 507 million shares. Excluding 30.8 million shares held by his wife, Cai’s holdings of 862.9 million shares would be worth as much as the equivalent of $2.2 billion.

After the IPO, Ningbo-headquartered Lygend is expected to be 3% owned by CATL, formally known as Contemporary Amperex Technology. Chairman Robin Zeng ranked No. 3 on the 2022 Forbes China Rich List released earlier this month with a fortune of $28.9 billion.

China accounts for 78% of Lygend’s revenue, South Korea 10% and Indonesia 6.7%. About 43% of its products are used by the EV industry. Revenue in the first six months of 2022 more than doubled to 10 billion yuan from 4 billion year a year earlier.

Trading is expected to start at the Hong Kong Stock Exchange on Dec. 1.

See related posts:

China’s Richest See Record Plunge In Wealth

Plugged In: BYD CEO Wang Chuanfu Explains How China’s No. 1 EV Maker Caught Up With Tesla

BYD Expands Brands With New Entry This Month

Taiwan Banks Cut Loans To China Amid Slower Mainland Economic Growth, Military Tension

@rflannerychina