The ASX boards are welcoming a new entrant today. Li-S Energy Limited (ASX: LIS) has just completed its initial public offering (IPO) this morning. And boy, what an ASX debut it has been so far. At the time of writing, the Li-S Energy share price has exploded by an incredible 210% from its IPO price of 85 cents. It’s current share price is sitting at $2.62.
This company is being spun-out of PPK Group Limited (ASX: PPK) after weeks of rescheduling. It brings with it a prospect of a new, cheaper, safer and more efficient battery technology called Lithium-Sulphur (Li-S). Lithium-sulphur batteries are a candidate to replace the current dominant lithium-ion battery technology.
According to Li-S Energy, Li-S batteries offer the potential of a far more advanced battery. This is reportedly due to the following:
The theoretical energy density of a lithium-sulphur battery is in the order of five times that of a standard lithium-ion battery… They are also lighter, safer, faster charging, and using more environmentally friendly raw materials.
However, Li-S Energy also notes that this technology has the following drawbacks:
Lithium-sulphur batteries have yet to be mass produced. Historically, the challenge in developing lithium-sulphur batteries has been effectively optimising and stabilising the battery components during charge and discharge cycling.
Lithium-sulphur batteries tended to fail after a low number of recharge cycles, making them of little use for most applications.
Li-S Energy is obviously vying to overcome these barriers and commercialise this exciting technology.
How did the ASX Li-S Energy IPO work?
So according to the company’s ASX release from 24 September, Li-S Energy has raised $34 million through the issuance of 40 million shares. That was at today’s issue price of 85 cents each.
Just a touch over 150 million shares have hit the ASX boards today. But another ~500 million shares will be placed in escrow. These will be restricted from trading until either April 2022 or September 2023.
It will be interesting to see what the Li-S Energy share price does over the next few days after this explosive ASX debut today.