The Li-S Energy (ASX:LIS) share price is still running low. What's happening?

What's gone wrong with Li-S Energy?

It was only a few weeks ago that we were discussing the wildly successful initial public offering (IPO) of the Li-S Energy Ltd (ASX: LIS) share price. This hot battery share hit the ASX boards on 29 September and immediately saw a 174% rise by the end of its first day of trading. The share price soared from the IPO price of 85 cents a share all the way to $2.33 by the end of the day.

The company's second day of life on the ASX boards saw Li-S Energy gain another 3% or so, and even hit $3.05 a share. That's its current all-time high.

But the more recent weeks of Li-S Energy's life haven't been as sweet for investors. Today, this company is currently (at the time of writing) trading for $1.98 a share. At that price, Li-S Energy is now more than 15% from where this company closed at on its first day of trading. And more than 35% from its all-time high of $3.05 a share. Over the past month, the company has lost 15.8%. That's including 10.8% in just the past trading week.

So what's gone wrong for Li-S Energy, the company that so excited investors upon its ASX IPO?

asx lithium shares represented by two little wooden peg dolls one with happy face below full battery icon, the other with sad face below empty battery icon

Image source: Getty Images

Li-S Energy share price comes under pressure

Well, it's not entirely clear. We did get a quarterly update from Li-S Energy at the end of last month for the quarter ending 30 September. This update informed the markets that Li-S has raised $34 million from its "oversubscribed" IPO. It also stated that the company had $50.5 million in cash and cash equivalents as of 30 September. The company said:

Of this [$50.5 million], $29.1 million is earmarked for project expenditure, plus working capital of more than $16.0 million to fund potential expansion and acceleration of existing projects, commencement of new development projects and the pursuit and engagement in revenue generating opportunities…

It also told investors that "net cash flows used in operating activities during the quarter were $1.8 million".

Further, Li-S Energy gave an update on the "substantial progress" its eponymous lithium-sulphur battery technology has enjoyed over the quarter. According to Li-S Energy, "extended cycle testing" on some of this technology showed batteries "reaching 900 charge/discharge cycles at greater than 60% retained capacity". Additionally, the 'Li-Nanomesh' technology that the company has also been working on has also shown progress.

So it's not entirely clear if this update had any meaningful role in the Li-S Energy share price slide that the company has been enduring in recent weeks. It's possible of course. But it's also possible that investors got a little too excited when this company IPOed and are now letting out some steam.

At the current Li-S Energy share price of $2.01, this company has a market capitalisation of $1.34 billion.

More on Materials Shares

A woman sits in a cafe wearing a polka dotted shirt and holding a latte in one hand while reading something on a laptop that is sitting on the table in front of her
Materials Shares

Orora FY26 earnings: Cans strong, Glass under pressure

Orora's FY26 results show strength in Cans but ongoing challenges for Glass, including a substantial non-cash impairment.

Read more »

Three people at a building site discussing a plan whilst eating.
Materials Shares

Fletcher Building posts higher volumes in Q1 FY27, residential lags

Fletcher Building posted Q1 FY27 sales volume growth in several key business units, though residential activity stayed challenging.

Read more »

A bland looking man in a brown suit opens his jacket to reveal a red and gold superhero dollar symbol on his chest.
Materials Shares

2 ASX lithium shares to buy with 38% to 120% upside

Bell Potter sees potential for these shares to rise strongly over the next 12 months.

Read more »

Female miner in hard hat and safety vest on laptop with mining drill in background.
Materials Shares

Why are Lynas Rare Earths shares crashing 6% today?

Are Lynas Rare Earths shares a buy, sell, or hold now?

Read more »

Businessman planning and analysing investment data.
Materials Shares

Forget PLS, this ASX lithium stock could rise 80%

Is this lithium miner about to roar higher? Here's what Bell Potter is predicting.

Read more »

Couple using their digital tablet together.
Materials Shares

Orica updates on North American supply and land sales

Orica secures key North American supply and updates on land sales, supporting future growth and shareholder value.

Read more »

Man analysing data on his laptop.
Materials Shares

Forget BHP and buy this ASX copper stock

Bell Potter thinks there could be big returns on offer from this stock.

Read more »

A brightly coloured graphic with a silver square showing the abbreviation Li and the word Lithium to represent lithium ASX shares such as Core Lithium with small coloured battery graphics surrounding
Materials Shares

Why are Core Lithium shares crashing 8% on Thursday?

A busy morning of announcements has investors taking notice.

Read more »