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Tinci Materials Plans Hong Kong IPO To Court International Investors

The lithium battery materials maker aims to use funds from its planned IPO to advance its global expansion, as it grapples with declining profits and weak prices

Key Takeaways:

Tinci Materials plans to make a Hong Kong IPO, whose proceeds would go to advancing its global expansion strategy 

The lithium battery material maker's profit dropped 74.4% last year to 483 million yuan, but showed signs of stabilizing starting in the fourth quarter

　

By Lee Shih Ta 

Growing global interest in new energy materials is prompting Guangzhou Tinci Materials Technology Co. Ltd. (002709.SZ) to consider trying its hand at global fundraising. The company said it plans to file for a Hong Kong IPO, aiming to see if the market's international investors agree with their Chinese counterparts who have valued its Shenzhen-listed shares at over 35 billion yuan ($4.88 billion). As the listing plan moves forward, all eyes will be watching to see how this lithium-ion battery concept stock fares under scrutiny from the international investors who typically set the tone in Hong Kong. 

Tinci says its planned Hong Kong listing aims to further advance its global expansion strategy by building an international capital-raising platform to fund and develop its nascent overseas business, according to a public filing last week with the Shenzhen Stock Exchange. 

Founded in 2000, Tinci started out producing surface-active agents (surfactants), chemical products that reduce the surface tension of a liquid. It moved into the lithium-ion battery electrolyte business in 2011, kicking off a rapid growth phase for the company. Such electrolytes are a key material used to make lithium-ion batteries, whose demand has exploded with the rapid rise of the new energy vehicle (NEV) and energy storage markets. 

The company's electrolyte products are widely used in power-generation, storage and 3C digital batteries, with such electrolytes and related raw materials contributing more than 80% of its revenue in 2024. The company accounts for around 13% of the lithium-ion ...