Sector News

Livent shares end slightly down on market debut

October 12, 2018
Chemical Value Chain

Shares in Livent, the lithium producer spun off from FMC Corp., ended just below their IPO price at $16.97 on their first day of trading on the New York Stock Exchange on Thursday, after falling around 5% during the day. This outcome, however, came in the midst of a widespread sell-off in stock markets in the United States and around the world, and thus represented a significant outperformance relative to the market on the day. Livent shares were offered to investors at $17, below the $18–20 range the company originally expected, and raised $340 million net of expenses, most of which go to FMC. The underwriters have an option to buy a further 3 million shares at the IPO price, less expenses. Livent says it will use the net proceeds from the offering to make a distribution to FMC and to fund origination fees associated with its revolving credit facility. At its open Livent had a market capitalization of $2.34 billion.

Following the IPO, FMC says it expects to retain approximately 85% of Livent’s outstanding common stock until such time as it chooses to distribute the remaining Livent shares to existing FMC shareholders through a spin-off or split-off, to complete the full separation of the two companies.

The Livent IPO came at a time of increasing investor caution toward lithium-related stocks, following widespread expectations of looming overcapacity due to a raft of major expansions worldwide. Lithium prices have halved this year in China, the world’s largest consumer of the metal. A rival Chinese lithium producer, Ganfeng Lithium, saw its shares fall by more than 10% on their first day of trading on the Hong Kong stock market yesterday, being down as much as 29% at one point, after the company raised $442 million in an IPO.

By: Natasha Alperowicz

Source: Chemical Week

comments closed

Related News

September 25, 2022

France and Sweden both launch ‘first of a kind’ hydrogen facilities

Chemical Value Chain

France has launched an offshore green hydrogen production platform at the country’s Port of Saint-Nazaire this week, along with its first offshore wind farm. The hydrogen plant, which its operators say is the world’s first facility of its type, coincides with the launch of another “first of its kind” facility in Sweden dedicated to storing hydrogen in an underground lined rock cavern (LRC).

September 25, 2022

NextChem announces €194-million grant for waste-to-hydrogen project in Rome

Chemical Value Chain

The project sets up the Hydrogen Valley in Rome, the first industrial-scale technological hub for the development of the national supply chain for the production, transport, storage and use of hydrogen for the decarbonization of industrial processes and for sustainable mobility.

September 25, 2022

The problem with hydrogen

Chemical Value Chain

At first glance, hydrogen seems to be the perfect solution to our energy needs. It doesn’t produce any carbon dioxide when used. It can store energy for long periods of time. It doesn’t leave behind hazardous waste materials, like nuclear does. And it doesn’t require large swathes of land to be flooded, like hydroelectricity. Seems too good to be true. So…what’s the catch?