After numerous delays, PPK’s spin-off is finally ready to hit the market this morning.
At the time of writing, the PPK share price is $19.73, 10.47% higher than its previous close.
Let’s take a closer look at PPK’s journey to today.
Li-S Energy to debut on the ASX
The PPK share price is gaining this morning as the market awaits its battery technology spin-off’s ASX debut.
Li-S Energy is a joint venture between PPK, PPK’s subsidiary BNNT Technology, and Deakin University.
Li-S Energy produces lithium batteries using lithium-sulphur chemistry, incorporating boron nitride nanotubes (BNNTs) into battery components to improve capacity and stability.
The company believes lithium-sulphur is the future of lithium-ion batteries. It says the technology is able to produce 5 times more energy density than traditional lithium-ion batteries and can produce similar results with one third of the weight. It also notes lithium-sulphur batteries are cheaper and less of a fire risk.
Under its prospectus, investors could get shares in Li-S Energy for 85 cents apiece. That gives it an expected market capitalisation of around $544 million.
Li-S Energy’s IPO was originally meant to happen in late August but was pushed back while awaiting approval from the ASX. Conditional approval to debut was granted in mid-September before it was finally given approval to list last week.
The PPK share price gained 9% on the back of the IPO’s conditional approval but fell 1.8% on its definitive authorisation.
After today’s float, PPK will be Li-S Energy’s largest shareholder, owning 45.4% of its stock. Another 13% of Li-S Energy’s shares will be owned by Deakin University, with BNNT Technology holding 4.7%.
So far, Li-S Energy’s IPO has raised $34 million. It is listing with $52.9 million of cash that it will use to pursue commercial, research, and development initiatives.
PPK share price snapshot
2021 has been a good year so far for the PPK share price.
It has gained 229% since the start of this year. It is also 399% higher than it was this time last year.