Why is the Li-S Energy (ASX:LIS) share price tumbling 13% today?

Shares in the battery technology group are getting smashed on Thursday

| More on:
ASX shares skills shortage downgrade arrow causing the ground to crack symbolising a recession

Image source: Getty Images

The Li-S Energy Ltd (ASX: LIS) share price has been tumbling lower on Thursday. Shares in the Aussie lithium playwe are down a whopping 13.7% despite no new announcements today.

So, what’s wreaking havoc on the recently-listed battery technology group on Thursday?

Why the Li-S Energy share price is tumbling 13% today

Let’s start with a little bit about Li-S Energy. The group launched a $34 million initial public offering (IPO) in early September. However, Li-S Energy was initially spun out of the diversified investment group PPK Group Limited (ASX: PPK).

Excitement over the huge market opportunity ahead led the Li-S Energy share price to surge upon listing on Tuesday.

Shares in the battery technology group climbed as high as $3.05 having been listed at $0.85 per share. The oversubscribed IPO turned out to be a hit as investors clambered to snap up shares in the Aussie small-cap.

However, there appears to be a hangover of sorts from that initial head price increase. The Li-S Energy share price is down over 13% today despite no news from the company.

In an interview with The Motley Fool, covered by Fool colleague James Mickleboro, Li-S Energy CEO, Dr Lee Finniear, commented on the IPO:

It’s wonderful to see Australian investors get behind home grown technology. We’ve been delighted with the market’s response to the listing and look forward to the future growth of the company.

Dr Finniear also noted the company’s significant market opportunity and was optimistic that EV manufacturers will be taking note of its technology.

With the massive growth forecast in the EV and battery market, and the demand for higher energy, lighter, safer batteries, we expect strong interest from EV manufacturers and others who are well aware of the limitations of existing lithium ion batteries.

Foolish takeaway

After rocketing higher on its first day on the markets, the Li-S Energy share price is returning back to earth on Thursday. Shares in the battery technology group are down more than 13% with investors watching closely to see how the company’s performance is in the coming months.

Should you invest $1,000 in Li-S Energy right now?

Before you consider Li-S Energy , you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Li-S Energy wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

Motley Fool contributor Ken Hall 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 Energy Shares

An oil refinery worker stands in front of an oil rig with his arms crossed and a smile on his face as the Woodside share price climbs today
Energy Shares

Woodside share price rises after merger clears final regulatory hurdle

It's a good day for ASX 200 energy shares and Woodside is making the most of it.

Read more »

Close up of a miner wearing a hard hat with a solemn look on his face, with an oil drill in the background.
Energy Shares

Woodside share price lifts despite Twiggy’s latest ‘greenwashing’ accusations

What's impacting the Woodside share price today?

Read more »

Workers inspecting a gas pipeline.
Energy Shares

AGL share price bounces back amid latest demerger opposition

Here's the latest criticism of AGL's planned demerger.

Read more »

Coal-fired power station generic.
Energy Shares

How dependant on coal closure is the AGL share price?

Climate activists disagree with AGL's decision to hold onto coal, saying its depleting shareholder value.

Read more »

A girl holding a globe shouts into a green megaphone about climate change.
Energy Shares

Why are Fortescue and green hydrogen making news again on Friday?

The company's green energy leg has earmarked a coal-fired power plant as a future hydrogen production facility.

Read more »

A businesswoman and businessman look sideways at each other during a dispute at their laptops.
Energy Shares

AGL share price lifts despite Greenpeace accusing leadership of being ‘caught with their pants down’

The climate-focused organisation said AGL has "the memory of a goldfish and the agility of an elephant".

Read more »

a coal miner in hard hat with a light on it kisses a large lump of coal that he is holding in his hand.
Energy Shares

Why are these ASX coal shares having a top run today?

Newcastle coal futures are up on Thursday.

Read more »

A group of businesspeople hold green balloons outdoors.
Energy Shares

Own APA shares? Here’s the latest on the company’s ‘ground breaking’ green hydrogen project

The company has taken another step towards transporting green hydrogen.

Read more »