IPO Watch: Another Vulcan joined the ASX today (but it’s a steel company)
The ASX welcomed Vulcan Steel (ASX:VSL), a company peculiar not just because it shares a first name with one of the hottest companies of 2021, but also because it’s one of only a few steel ASX companies.
This Vulcan was founded in 1995, and is a distributor and processor of steel products in Australia and New Zealand.
It was one of the largest IPOs of the year, raising $371.6 million and listing with a market capitalisation of $930 million – a value that held firm when it listed at 12pm (AEDT).
The company’s shares are dual listed on the ASX and the NZX making it rare not just being listed on both sides of the Tasman but being an IPO on the NZX at all – the Kiwi bourse has lacked IPOs in recent years with just a handful of listings since 2017.
Vulcan Steel CEO Rhys Jones said today was a momentous occasion and pivotal step.
“We are excited about our prospects. Our team’s focus is unwavering when it comes to enhancing customer satisfaction, growing our business and earnings and in the process creating more value for our shareholders,” he declared.
While there is no shortage of iron ore companies on the ASX there are only a handful of pure-play steel stocks.
While VSL shares a similar name, it has no relation to Vulcan Energy (ASX:VUL) – the high flying battery metals stock.
Despite a short seller report and subsequent drop in its shares, VUL still up nearly 80 times in 2 years from 16 cents to over $12.
It has spun off its non-core assets into a separate company Kuniko (ASX:KKI) and it too has been a multi-bagger since listing.