The Strategist

World's largest lithium producer places $1.75 billion in depositary shares

03/06/2024 - 06:11

The largest lithium producer in the world, US-based Albemarle, said in a press release that it has begun a public offering of $1.75 billion in depositary shares.

Jacobs School of Engineering, UC San Diego
Jacobs School of Engineering, UC San Diego
Each of the securities represents a 5% interest in one mandatory convertible preferred stock of Series A.

Albemarle plans to provide the offering's underwriters a 30-day window to buy an additional $262.5 million worth of depositary shares.

Among the general corporate purposes for which the proceeds from the sale of the depositary shares will be utilized may be the building and expansion of lithium facilities in Australia and China.

These preferred shares are scheduled to be converted into common shares on or around March 1, 2027. Pro rata, the Depositary Shares shall automatically be converted into Ordinary Shares. The conversion parameters will be decided upon when they are priced.