IPO Watch: Kingwest stumbles on ASX debut
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Kingwest Resources made its ASX debut on Friday after raising $5 million in an initial public offering — but it wasn’t all smooth sailing.
The gold explorer (ASX:KWR) kicked off its first session at 12pm AEST slightly below its 20c issue price before slipping slipping to close its first day at 18.5c.
About $285,000 worth of shares were bought and sold.
Kingwest is exploring for gold and base metals over a 959 sq km landholding in the Eastern Goldfields region near Leonora in Western Australia.
The company was originally aiming to list on the ASX by July 19.
The float was delayed slightly due to the early termination of the agreement with its corporate advisors and the striking of an agreement that saw various seed investors voluntarily escrow their shares for 12 months from the date of listing.
Heading the junior explorer is Stephen Woodham, the former managing director of YTC Resources – which is now known as Aurelia Metals (ASX:AMI), a precious and base metals producer.
Mr Woodham, who has over 15 years of experience in mining and exploration in Western Australia and New South Wales, was also a founding managing director of Centaurus Resources (ASX:CTM) – which at the time was a Brazil-focused iron ore explorer.
He says the company hopes to begin drilling in the next four weeks.
“We will also be flying an airmag [aeromagnetic survey] over the tenement looking for magnetic rocks which will help identify areas of interest which have not been identified before,” he said.
“We already have significant drilling targets that don’t rely on the airmag, so while that survey is important, it’s not necessary to begin work.”
Today’s other ASX debut did not fare any better.
The stockmarket got its second space stock today with the listing of spy satellite operator Kleos Space.
Luxembourg-based Kleos (ASX:KSS) debuted at 16c — a 20 per cent discount to its 20c issue price.
The stock momentarily rose to 17c but closed back at 16c for the day with $877,000 worth of shares changing hands.
Kelos raised $11 million to build a miniature spy satellite network.