Commodities & Metals

Livent Closes in on IPO

Livent has filed an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). The company intends to price its 20 million shares in the range of $18 to $20 per share, with an overallotment option for an additional 3.0 million shares. Note that the company is expected to price its shares after the close on Wednesday and enter the market on Thursday. At the maximum price, the entire offering is valued up to $460.0 million. The company intends to list its shares on the New York Stock Exchange under the symbol LTHM.

The underwriters for this offering are Merrill Lynch, Goldman Sachs, Credit Suisse, Citigroup, Loop Capital Markets and Nomura.

This is a pure-play, fully integrated lithium company, with a long, proven history of producing performance lithium compounds. Its primary products, namely battery-grade lithium hydroxide, butyllithium and high-purity lithium metal, are critical inputs used in various performance applications.

The firm’s strategy is to focus on supplying high-performance lithium compounds to the fast-growing electric vehicle battery market, while continuing to maintain its position as a leading global producer of butyllithium and high-purity lithium metal. With extensive global capabilities, over 60 years of continuous production experience, applications and technical expertise and deep customer relationships, management believes it is well positioned to capitalize on the accelerating trend of vehicle electrification.

In the filing, the company described its finances as follows:

Our revenue was $264.1 million and $347.4 million in 2016 and 2017, respectively, representing an annual growth rate of 32%, and $210.7 million for the six months ended June 30, 2018, representing a growth rate of 51% compared to June 30, 2017. We are a highly profitable business, generating net income of $47.1 million, $42.2 million and $70.2 million, cash from operating activities of $51.0 million, $58.3 million and $18.0 million and Adjusted EBITDA of $74.8 million, $126.1 million and $94.5 million in 2016, 2017 and the six months ended June 30, 2018, respectively.

The company intends to use the net proceeds from this offering to make a distribution to FMC, which will continue to own a majority of the voting power of shares.