IPO Watch: Mixed investor reaction to resources floats sees one ASX wannabe take the backdoor in
Gold hopeful Carnaby Resources has decided a better way for it to get to the ASX is by teaming up with an already listed explorer that needed good projects.
Carnaby, led by former Beadell Resources executives Peter Bowler and Robert Watkins, was looking to list on the ASX in its own right after last year reaching separate deals with Diatreme Resources (ASX:DRX) and Syndicated Metals (ASX:SMD) to buy their gold projects.
But now it is going down the reverse takeover route, which is probably a better option given the mixed reactions recent resources floats have been fronted with on debut this year.
So far just two resources IPOs have made it.
Carnaby now plans to tie the knot with Berkut Minerals (ASX:BMT), which will be the listed shell picking up the Tick Hill gold project in northwest Queensland from Diatreme and its partner Superior Resources (ASX:SPQ).
Berkut, which will change its name to Carnaby Resources, will also take ownership of Syndicated Metals’ (ASX:SMD) 82.5 per cent stake in the Southern Hub copper and gold tenements in north Queensland.
Diatreme chief Neil McIntyre told Stockhead the reverse takeover was a much better option for Carnaby, and Diatreme came out of it with a much simpler deal.
“It was a more direct route rather than going the IPO route. It was much faster and more efficient to use an existing listed entity,” he said.
“It’s a much cleaner and neater way for us to do it. You get listed stock straight away, although we have agreed to a 12-month escrow period.”
The deal is expected to give Diatreme a stake in Berkut of more than 5 per cent, making it a substantial shareholder and allowing it to retain its exposure to the Tick Hill mine – which was one of Australia’s highest grade and most profitable mines.
Syndicated would also have around a 5 per cent interest in Berkut.
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High-tech recruitment platform Jobstore has been trying to get itself listed since launching its $8m IPO in September last year.
Unfortunately, it’s hit a few road bumps along the way – a major one being it was only able to raise $100,000 of the minimum $6.6m it was targeting, as reported by Stockhead back in mid-November.
Jobstore isn’t giving up though, extending its offer to March 15 and pushing its planned listing date out to April 5.
Stockhead has contacted Jobstore to find out if it’s managed to get any more cash.
Also in the queue to list is fintech AXS Group, which had to cut the size of its initial public offering in half and again push out its date for listing.
The company said in the latter part of February that it still hadn’t raised the new minimum of $3m it was hoping to but pencilled in a new expected listing date of March 15.
Here’s a list of IPO performances over the past year:
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Meanwhile, newly-listed payments provider Splitit (ASX:SPT) still retains its spot as the top performing IPO over the past year.
Since it listed in late January, it has surged nearly 740 per cent to trade around $1.68.
On Monday Splitit received a query from the ASX as to why its share price leapt to nearly $2 from 93.5c a week earlier.
The company said there were no announcements yet to drop that could’ve explained the sudden spike, but added that perhaps it was because of several recent news articles explaining the company’s business model.
“The publication of these articles may explain the recent increase in share price and trading volumes,” Splitit said.
Canterbury Resources has managed to cure its first-day blues and gain 13.3 per cent to trade at 34c.
It wasn’t a warm welcome for the copper and gold junior last week when it lit up the boards, with shares opening 10 per cent lower than the 30c issue price before falling further to close its first day out at 26.5c.
At the other end of the scale, Smiles Inclusive (ASX:SIL) has continued its downward spiral after recently revealing it would now be likely booking a $1m loss instead of a $2.3m profit for FY19.
The dental practice operator has watched its share price tumble 83 per cent since it listed in late April last year to 17c.