The PPK (ASX:PPK) share price soars 10% amid Li-S Energy's IPO

PPK's spin-out, Li-S Energy, is set to float on the ASX at 11am this morning.

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The PPK Group Limited (ASX: PPK) share price is taking off this morning as Li-S Energy Limited (ASX: LIS) gears up to make its long-awaited ASX debut.

After numerous delays, PPK's spin-off is finally ready to hit the market this morning.

Li-S Energy's Initial Public Offering (IPO) will begin at 11 am 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.

Motley Fool contributor Brooke Cooper 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.

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