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IPO Watch: Four companies listed today, but only IT services company Atturra shined
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Today was one of the busiest days for IPOs this year, with four companies listing.
Three of them were resources stocks but the best performer was tech company Atturra (ASX:ATA).
Atturra (ASX:ATA)
Arguably what helped this IT services company post a gain on day one was that its IPO coincided with a trading update which showed ATA was on track to meet its prospectus forecasts.
Atturra provides services to a client base spanning multiple industries including banks, energy/resources and government departments.
While the company did not give specific figures, it said sales were strong between November 1 and December 21 and that it retained a high retention rate among its clients.
“Today marks another major milestone in Atturra’s history as we look to capitalise on the large addressable market and considerable industry tailwinds in Australia’s IT services market,” said CEO Stephen Kowal.
“We see considerable existing and near-term growth opportunities within the business, and aim to grow both organically and inorganically to become a significantly larger business than we are today.
“The funds raised as part of the offer will allow us to accelerate our growth plans and continue to deliver the highest quality of customer experience to both new and existing clients.”
Atturra (ASX:ATA) share price chart
Falcon Metals (ASX:FAL)
Remember the company that Chalice Mining (ASX:CHN) was before it stumbled across Julimar? It was an “incubator” of gold projects with a focus on Victoria as well as WA.
Falcon Metals is a spin off of those assets — the Pyramid Hill gold project in Victoria’s 60Moz Bendigo gold fields and the Viking project near Norseman in WA. Chalice shareholders got one Falcon share for every three Chalice shares they owned.
Chalice CEO Alex Dorsch will be a non-executive director and although Chalice’s chairman Tim Goyder won’t be on the board, he has a stake of nearly 8%.
Falcon’s new CEO will be former Sirius boss Mark Bennett.
Sirius discovered the Nova-Bollinger nickel deposit in 2012 which IGO (ASX:IGO) was bought just three years later for $1.8 billion or $4.38 per share – well ahead of the 5 cent price it traded at before the discovery.
Falcon shares dropped by 22% on debut.
Falcon Metals (ASX:FAL) share price chart
DMC Mining (ASX:DMM)
This company also has directors with a proven track record.
A decade ago, David Sumich, Bruce Franzen and William Witham ran a company also called DMC but focused on iron ore and it was taken over by Cape Lambert Resource for $55 million.
Unfortunately, DMC shares fell like Falcon – by over 30% – after joining the ASX boards.
DMC Mining (ASX:DMM) share price chart
Infinity Mining (ASX:IMI)
This company – which is not to be confused with Infinity Lithium (ASX:INF) – is, like Falcon, a spin out from a larger player.
In this case it is the non-core gold and lithium assets of iron ore play Macarthur Minerals (ASX:MIO).
Macarthur CEO Andrew Brunton said it was a big step for his company as well as Infinity.
“Macarthur will be a major shareholder of Infinity upon listing and will look forward to being part of the Infinity story as it advances with an all-important value-building phase over the course of the next 12 months,” he said.
But Infinity also fell on debut – by 15%.
