Tianqi Lithium Corporation (09696) experienced a sharp decline, dropping over 9% as trading resumed. At the time of writing, the stock was down 9.13%, trading at HK$44.98, with a turnover of HK$74.6883 million. The catalyst for the sell-off was the company's announcement of a plan to raise more than HK$5.8 billion in aggregate through the placement of new H-shares and the issuance of zero-coupon convertible bonds. Specifically, Tianqi Lithium intends to place 65.05 million new H-shares and issue US-dollar settled, zero-coupon convertible bonds due 2027 with a total principal amount of RMB 2.6 billion. Proceeds from the combined fundraising initiatives, estimated at approximately HK$5.8591 billion (net proceeds around HK$5.8306 billion), are earmarked to bolster the strategic development of the company and its subsidiaries within the lithium sector. The funds will be allocated for capital expenditures required for project development and optimization, potential acquisitions of high-quality lithium mineral assets, with the remainder designated for supplementing working capital and general corporate purposes. Regarding the placement of new H-shares under the general mandate, the company entered into an amended and restated placement agreement with placing agents. The placement price is set at HK$45.05 per share, representing a discount of approximately 9% to the last closing price of HK$49.50 per H-share on February 3, 2026, the final trading day before the signing of the agreement. Assuming full placement of all 65.05 million shares, the total gross proceeds from the placement are expected to be around HK$2.9305 billion, with estimated net proceeds of HK$2.924 billion. Separately, for the proposed concurrent issuance of US-dollar settled, zero-coupon convertible bonds due 2027 under the general mandate, the company executed an amended and restated subscription agreement with the managers. The bonds, with a total principal of RMB 2.6 billion, carry an initial conversion price of HK$51.85 per H-share, which is a premium of about 4.7% to the last closing price of HK$49.50 on February 3. These bonds are fully convertible into 56.4819 million H-shares. The total gross proceeds from the bond issuance are anticipated to be approximately HK$2.9286 billion, with estimated net proceeds of HK$2.9066 billion.