Dynamic Drill & Blast shares more than double on ASX debut
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Dynamic Drill & Blast (ASX:DDB) has been the latest IPO success story of 2020, surging on its first day as a listed company.
The Western Australian mining services company entered the ASX this morning having raised $5 million.
It commenced trading at 10.30am and rose to 46 cents – a 130 per cent gain from its IPO price — before settling at 42.5c by about 12pm EST.
Dynamic was founded 9 years ago, but said the listing would mark a new phase of growth for the company.
The company noted strong activity in WA’s mining sector, particularly in gold and iron ore.
“Dynamic is now well-funded for our next phase of growth and we have a clear strategy in place to achieve that,” said managing director Mark Davis.
“We will continue to develop a pipeline of project opportunities and are buoyed by the level of tendering activity at the moment across both mining and civil infrastructure.
Dynamic’s solid debut continues a solid run for ASX IPOs in 2020.
Prior to listing the average gain for an ASX IPO was over 50 per cent. This is well ahead of 2019 despite the far higher number of stocks entering the bourse.
It also continues the solid run industrial stocks, including mining services companies, have seen in recent months despite COVID-19.
A number of stocks have also stood by previous commitments to pay dividends – an exemption rather than the norm for small caps even in the best of times.