Galaxy Resources delays HK listing

PUBLISHED : Tuesday, 15 March, 2011, 12:00am
UPDATED : Tuesday, 15 March, 2011, 12:00am

Australian-listed lithium producer Galaxy Resources is postponing its Hong Kong listing, saying Japan's earthquake, soft US and Chinese economic data, and Middle East unrest are combining to weaken investors' appetite.

Galaxy Resources had originally sought a secondary listing on the Hong Kong stock exchange by the first quarter of this year.

It did not say how much it planned to raise in the listing, but Reuters reported Galaxy Resources hoped to raise US$200 million and BNP Paribas and Morgan Stanley had been selected as bookrunners.

Managing director Iggy Tan said yesterday the company 'saw no necessity to launch the IPO in a market environment that would not serve the interests of either existing shareholders or deal participants'.

Galaxy Resources had earlier secured A$91.5 million (HK$719.29 million) from investors, including Jiangsu-based scrap metals processor Fengli Group and Li Shufu, the majority shareholder of Geely Automobile Holdings.

Tan did not give details of when the Hong Kong listing plan would resume but said that Galaxy Resources remained focused on it and would proceed 'when we believe the time is right'.

The lithium producer is building a plant in Jiangsu to make lithium carbonate, a compound that is used for manufacturing batteries and sophisticated electronics including computers.

Australian billionaire Clive Palmer's mining company Resourcehouse has also delayed a planned US$3 billion Hong Kong listing, according to people familiar with the deal.