(Yicai Global) July 1 -- Tianqi Lithium’s stock jumped after the Chinese lithium mining giant said it plans to raise as much as HKD13.4 billion (USD1.7 billion) from a secondary listing in Hong Kong.

Tianqi Lithium [SHE: 002466] gained 6.6 percent in Shenzhen today to close at CNY133 (USD19.85), after earlier surging as much as 8.2 percent.

The company will issue 164 million shares priced at HKD69 to HKD82 (USD8.79 to USD10.45) each, the Chengdu-based miner said yesterday. If a 15 percent over-allotment option is exercised, Tianqi Lithium could raise almost USD2 billion.

The stock will debut on the Hong Kong Stock Exchange on July 13, making Tianqi Lithium the second Chinese lithium miner to go public in the mainland and Hong Kong after Xinyu-based Ganfeng Lithium. It also looks set to be the biggest share offering in Hong Kong this year.

More than 60 percent of the proceeds will be used to repay a USD1.8 billion debt Tianqi Lithium defaulted on at the end of last year, part of a USD3.5 billion syndicated loan it took out to buy nearly 24 percent of Chile’s Sociedad Quimica y Minera, the world’s largest lithium producer.

Tianqi Lithium also will use around HKD1.2 billion to build a plant in the southwestern Chinese city of Suining and about HKD785 million (USD100 million) to repay loans from Chinese banks, while HKD1.2 billion will go to supplement capital, it added.

The listing has seven cornerstone investors. China Pacific Insurance Company and Korean chemical firm LG Chem will offer HKD4.9 billion (USD624.3 million) to subscribe for 59.8 million shares. US electric carmaker Tesla, which was rumored to join the subscription, was not listed.

Tianqi Lithium pulled a planned Hong Kong listing in 2018, citing a weakened market environment.

Editors: Xu Wei, Futura Costaglione