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GXY•Galaxy to list on the Hong Kong exchange
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It seems that the news waterfall keeps on flowing from Galaxy.
Emerging lithium producer, Galaxy Resources Limited (ASX: GXY), (Galaxy or the Company) is pleased to announce that it has applied for a dual listing of its shares on the Stock Exchange of Hong Kong (SEHK). The Company has submitted its Form A1 listing application, and subject to SEHK approval, is targeting listing in the first quarter of 2011.
The Company has appointed Morgan Stanley and BNP Paribas as joint sponsors and joint bookrunners for the proposed listing on the SEHK. Both Morgan Stanley and BNP Paribas are leading, globally renowned investment banks. Azure Capital has been engaged as the Company"s financial adviser.
The Hong Kong listing will provide the platform for Galaxy to establish a vertically integrated, lithium resource, chemical and battery manufacturing company.
Galaxy also announces that it is evaluating the potential to construct a manufacturing plant to produce lithium ion batteries for E-Bikes.
Galaxy Managing Director, Mr Iggy Tan, said that moving toward a vertically integrated business model and the downstream production of E-Bike lithium batteries offers the potential for higher margins and attractive returns for the Company.
"The E-Bike market in China is experiencing rapid growth and the production of these battery packs represents an excellent entry point to the market," Mr Tan said.
Mr Tan said a Hong Kong listing will provide an outstanding platform for growth and position Galaxy as one of the largest and lowest cost lithium carbonate producers in China.
"The listing and associated capital raising represents the beginning of another exciting growth phase for the Company with the potential to deliver value for existing Galaxy shareholders and new investors alike," he said.
"The dual listing will afford Galaxy greater access to capital sources, significantly improve liquidity and provide greater alignment between our investor and our customer base.
"With policies under implementation aimed at increasing the use of renewable energy and encouraging the mass production of new, clean energy vehicles, there is a greater understanding of the demand growth prospects for lithium products amongst Chinese and Hong Kong based investors," Mr Tan said.
