Tianqi Lithium Corporation (09696) plans to issue 65.05 million H shares and issue 2.6 billion yuan convertible bonds, raising a total net proceeds of about 5.829 billion Hong Kong dollars.

Tianqi Lithium Corporation (09696) announced that the company and the placing agents entered into a placing agreement on February 3, 2026 (after trading hours). According to the terms and conditions of the placing agreement, the company agreed to issue placing shares at the placing price, and the placing agents agreed to act as agents of the company on an individual (not joint) basis to use their best efforts to get subscribers to subscribe for the placing shares at the placing price. The placing shares will be issued under the general mandate for issuance and subscription. The placing shares represent approximately 39.64% of the existing issued H shares (i.e. 65.05 million H shares) and approximately 3.96% of the total number of shares issued as of the date of the announcement. Assuming no other changes in the share capital of the company apart from the issuance of the placing shares, the placing shares would represent approximately 28.38% of the enlarged issued H shares and approximately 3.81% of the enlarged total number of issued shares after the issuance and subscription of the placing shares. The total nominal value of the placing shares in this placement is RMB 65.05 million. The placing agents will place the placing shares to not less than six subscribers using their best efforts. The company and the managers entered into a subscription agreement on February 3, 2026 (after trading hours). Subject to the terms and conditions of the subscription agreement, the managers agreed to subscribe for and pay, or cause the subscribers to subscribe for and pay, bonds in an aggregate principal amount of RMB 2.6 billion. The bonds can be converted into H shares under certain terms and conditions, with an initial conversion price of HK$49.56 per H share (subject to adjustment). The initial conversion price of HK$49.56 per H share represents a premium of approximately 0.1% over the closing price of HK$49.50 per H share on the Hong Kong Stock Exchange on February 3, 2026 (the date of signing the subscription agreement). Assuming all the bonds are converted at the initial conversion price of HK$49.56 per H share, the bonds will be converted into approximately 59.09 million H shares, representing approximately 36.00% of the existing issued H shares as of the announcement date and 3.60% of the existing issued shares. Additionally, it will represent approximately 26.47% of the enlarged issued H shares and 3.48% of the enlarged total number of issued shares after the conversion of the bonds. Assuming all the placing shares are placed and the bond issuance is completed, the total proceeds from the placement and bonds are estimated to be approximately HK$5.861 billion, with a net amount of approximately HK$5.829 billion after deducting applicable placement fees and expenses and bond-related commissions. The net proceeds will be used to support the company's strategic development in the lithium sector, including but not limited to capital expenditures for project development and optimization, as well as acquisitions of high-quality lithium assets. The remaining proceeds will be used for supplementing the company's working capital and general corporate purposes.