What is Lithium Power International?
Lithium Power International Limited [ASX:LPI] is a lithium explorer that recently raised approximately $8 million in an initial public offer (IPO).
The company issued 40 million shares at a price of $0.20. The company’s initial 35 million shares on offer were oversubscribed, so it issued an additional 5 million as per its prospectus.
When do the shares start trading?
The shares will begin trading today (Friday, 24 June). According to the initial prospectus, the company was formed to identify, fund, acquire, explore and develop major lithium projects in Australia and South America. Its exploration targets are currently located in Western Australia and Argentina.
What now for Lithium Power International?
There has been a lot of interest in the lithium sector this year. Some other lithium stocks have doubled in price. This is based off investors pricing in growing demand for lithium from electric vehicles and other uses. Time will tell if these forecasts prove accurate or not.
For now, I’d suggest doing nothing more than watching how LPI performs in the next month or two after its initial listing. The period after a stock first lists can often be tricky to judge. Of course, any mining explorer is always a high risk stock, and should be treated with extreme caution.