TLG Chart, page-3468

It may seem like a logical choice for investors to prefer equity in the parent company, but an SPV has its own advantages for investors/strategic partners.

Financial resources, risks and returns can be allocated separately from the company’s other projects. It acts as risk mitigation. What if Talga expands further into graphene or recycling and they end up failing? Those that are invested in the Vittangi Project won’t be exposed to that risk. An SPV also allows investors to track the project’s performance without it being affected by general volatility in the market (just look at how Talga’s share price has been hammered despite the company’s good performance).

The lower market cap may influence investor perception, but then again project finance is supposed to be based on the merits/risks and potential returns of the specific project rather than the overall valuation of the parent company.