Shares of LYGEND RESOURCE (HKEX: 02245) rose more than 5% during early trading.

As of the latest update, the stock was up 5.07% to HK$12.22, with a turnover of approximately HK$25.49 million.

This upward movement follows a significant development regarding the company's listing application.

Information recently disclosed by the Shenzhen Stock Exchange shows the IPO status for Ningbo Lygend Resource Technology Co., Ltd. was updated from "suspended" to "under inquiry" on May 29.

According to public filings, the company aims to raise up to 4.047 billion yuan through this share offering on the Shenzhen exchange.

The proceeds are intended to fund a demonstration project for recycling wet-process slag and a project for refining mixed hydroxide precipitate.

The company has stated that the successful completion of this IPO will enhance its global capacity for nickel resource deployment.

In a separate announcement, the company addressed recent market concerns regarding policy changes affecting nickel ore benchmark prices in Indonesia.

It clarified that its current production, operations, and various business activities are proceeding normally and smoothly.

Adding to the positive sentiment, a research report from Guosen Securities highlighted a firming outlook for nickel prices.

The report noted that as the world's largest nickel producer, Indonesia's policy direction is clearly towards tightening nickel ore supply.

While the enforcement of these policies may see some fluctuations, the overall effect is expected to lead to tighter global supply and demand for primary nickel.

Consequently, the report suggests the price center for nickel is likely to rise further.