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Lygend Resources H-shares jump nearly 9% as A-share IPO draws heavy demand with 0.037% lottery rate
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Lygend Resources (02245.HK) saw its stock price rise 8.58% to HK$18.60 on September 22, 2025, driven by the successful progress of its A-share IPO in mainland China. The company, a global leader in the nickel supply chain, completed online subscription for its A-share IPO on September 18, with the offering priced at RMB 21.23 per share. The IPO, which is the first 'H-to-A' project on the main board under China's full registration system, aims to raise RMB 36.7 billion to fund nickel processing projects in Indonesia. The offering saw extremely high demand, with an effective oversubscription ratio of 2,697.20 times and a lottery rate of only 0.037%. Market analysts expect the dual listing to open long-term financing channels and lead to a valuation revaluation of its Hong Kong-listed shares. The company reported strong financial results, with net profit attributable to shareholders surging 91.9% year-on-year in the first half of 2026 to RMB 27.38 billion, driven by production line expansion and improved nickel ore trade margins. However, cautious voices note risks from nickel price volatility and potential 'buy the rumor, sell the fact' profit-taking after the IPO event.
Source report
September 22 — Lygend Resources (02245.HK) experienced an early-session dip before staging a sharp rebound, closing up 8.58% at HKD 18.60, giving the company a market capitalization of HKD 28.94 billion.
The recent advancement of the company's A-share IPO has drawn significant market attention. As the first "H-to-A" listing on the main board under the full registration-based system, the A-share offering saw robust subscription demand. Market expectations suggest that the dual-listing structure will open long-term financing channels and support valuation recovery for the H-shares.
IPO Subscription Details
On September 18, Lygend Resources completed the online subscription for its A-share IPO. On the evening of September 20, the company released the results of online subscriptions and the lottery rate.
Key data points:
- A-share issue price: RMB 21.23 per share
- New shares to be issued: 172.89 million shares, representing 10% of total post-issuance share capital
- No secondary share sale or strategic placement
- Total funds raised: RMB 3.67 billion
- Net proceeds: RMB 3.404 billion
The funds will be directed toward:
- The wet-process slag resource utilization demonstration project on Obi Island, Indonesia
- The MHP refining production project
Both projects are expected to be completed by the first quarter of 2028. Once operational, they will enhance the company's capacity to supply high-value-added products such as battery-grade nickel sulfate and cobalt sulfate.
Overwhelming Subscription Demand
The online subscription attracted approximately 17.146 million valid applications, with total valid subscription shares reaching 326.423 billion. The initial oversubscription ratio hit 6,293.47 times, triggering a clawback mechanism. After the clawback, the online offering was increased to 121 million shares, resulting in a lottery rate of just 0.037%. The final effective oversubscription ratio stood at 2,697.20 times, reflecting exceptionally strong market sentiment.
Company Overview
Lygend Resources is a global leader in the nickel supply chain, with operations spanning:
- Nickel resource trading
- Pyrometallurgical smelting
- High-pressure acid leaching (HPAL) hydrometallurgical processing
The company operates a large-scale nickel industrial park on Obi Island, Indonesia, with a total designed capacity of 400,000 metric tons of nickel metal. Its downstream customers include lithium battery material manufacturers such as CATL and Rongbai Technology, supplying products to the power battery supply chain.
Financial Performance
| Period | Revenue | Net Profit Attributable to Parent | |---|---|---| | FY2025 | RMB 40.24 billion | RMB 2.857 billion | | H1 2026 | RMB 25.364 billion (+39.8% YoY) | RMB 2.738 billion (+91.9% YoY) |
The strong growth in H1 2026 was driven by the full commissioning of the RKEF Phase II production line and improved profitability in nickel ore trading.
Market Outlook
Bullish View
- The H-to-A listing provides access to mainland capital markets, with better liquidity and different valuation benchmarks in the A-share market
- Market expectations point to potential valuation re-rating for H-shares
- The oversubscription of A-shares reflects strong recognition of the company's fundamentals by both institutional and retail investors
- Recovery in new energy vehicle and lithium battery demand, combined with nickel as a core raw material for power batteries, could boost profits if nickel prices stabilize or rise
Cautious View
- Nickel price volatility remains a key risk; as a cyclical commodity, nickel prices are heavily influenced by Indonesia's export policies, global new energy demand, and inventory changes
- A decline in nickel prices could directly impact the company's profitability
- The recent H-share rally is partly driven by event sentiment; after the positive catalyst materializes, there is a risk of a "buy the rumor, sell the fact" pullback, and the sustainability of the rebound remains uncertain
Industry Recognition
As a core global leader in the nickel supply chain, market participants are closely watching whether Lygend Resources will be recognized by the Hong Kong Stock Exchange 100 Research Center and make the shortlist for the 13th Hong Kong Stock Exchange Top 100 awards. The selection process for the 13th edition is now in its preparatory stage, with nomination channels open for candidate lists.
Source
港股解码Eastern
Part of this Story
Lygend Resources Launches A-Share IPO After Hong Kong Listing, Targeting 55 Billion Yuan Revenue