Li-S Energy (ASX:LIS) share price explodes 200% higher after ASX IPO

Get ready for a rocket IPO story…

new asx share price IPO represented by 2 men throwing papers in the air gleeefully

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on IPOs

Man with rocket wings which have flames coming out of them.

The newest ASX IPO stock just rocketed 50%

This IPO has certainly been a success on day one.

Read more »

IPO written in circles with a man holding a smartphone and a laptop open.

Could this rumoured ASX IPO become a billion-dollar takeover target?

There might be a second chance to invest in a similar company to the one set to depart the ASX…

Read more »

IPO written in white with increasing arrows and a man holding out his hand.

Reddit stock soars 48% on debut! Will the ASX IPO market heat up again?

It was a great first day for Reddit.

Read more »

An arrow going upwards with a road sign saying 'IPO ahead'.

Should you buy into an IPO or wait until shares start trading on the ASX?

IPOs can be exciting, but also dangerous for investors.

Read more »

A female miner wearing a high vis vest and hard hard smiles and holds a clipboard while inspecting a mine site with a colleague.

ASX IPO alert: Blockbuster copper listing coming soon

Here's what you need to know about this upcoming IPO.

Read more »

IPO spelt out on a laptop with a red and green bar chart underneath.

Fewer ASX IPOs in 2023, but here's how they've performed

We reveal the top 10 new listings by size and how their share prices have changed to date.

Read more »

IPO written in yellow and stuck in the air.
Materials Shares

Rich listers are buying into the IPO of ASX lithium explorer Kali Metals

There's a new lithium share in town. Here's what you need to know.

Read more »

IPO written in circles with a man holding a smartphone and a laptop open.
International Stock News

The highs and lows of the Instacart $11 billion IPO

Here is a closer look at the latest company to hit the Nasdaq exchange.

Read more »