IPO Watch: Mont Royal Resources rallies nearly 18pc on ASX debut
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Gold hopeful Mont Royal Resources (ASX:MRZ) has landed safely on the ASX, trading as high as 17.5 per cent above its IPO price on its first day of public life.
The junior explorer closed the day out at 23.5c, with more than 1.1 million shares changing hands in 82 trades during the session.
Mont Royal raised $5m at 20c a share in its IPO and lit up the boards at 11.30am on Tuesday, immediately trading at a 15 per cent premium.
The company has two gold exploration assets – the Edjudina project located 170km north-west of Kalgoorlie in WA, and an option on the Yule River project about 40km from Port Hedland in WA’s Pilbara region.
One of the company’s directors is Michael O’Keeffe – the key man in Riversdale Mining, a coal explorer, sold to Rio Tinto for $4 billion, and more recently a key player in Riversdale Resources, a Canadian coal project developer acquired for $600m by Australia’s richest woman, Gina Rinehart.
Mont Royal is one of the lucky ones to make it onto the ASX because with only one quarter remaining for FY19, the outlook is not good for successful IPOs, raised capital and de-listings, according to the ASX’s latest monthly figures.
Over 90 new companies have been admitted to the ASX, and only 11 since the start of the calendar year. That’s compared with 113 listings this time last year.
Meanwhile, there have been 109 companies removed from the ASX, compared with 73 de-listings at this time last year.
The latest company to throw its hat into the ring for an ASX listing is health club operator Viva Leisure, which has just launched a $20m IPO.
The company, which has clubs in the Australian Capital Territory and New South Wales, is aiming for a June 7 debut. The good news for Viva is its IPO is fully underwritten.
Viva opened its first health club in 2004 and now operates 29 clubs.
It plans to acquire three additional clubs once it is listed and will open another 16 this year.
On listing, Viva expects to have a market cap of $52.6m and plans to start paying dividends from FY21.
Chairman Bruce Glanville said Viva’s dividend policy is to return between 40 and 60 per cent of net profit after tax back to shareholders.
Here’s a list of upcoming floats:
Swipe or scroll for full table
|Company||ASX code||IPO status||Focus||Fund raising||Issue price|
|AltoStratos||ATO||Withdrawn||Supply chain delivery technology||$16-$25m||40c|
|Australian Family Lawyers||AFL||Offer closes April 29; Listing set for May 10||Law firm||$4-$6.5m||20c|
|Australian Industrial Minerals||AAM||Withdrawn||Industrial minerals||$5m||25c|
|Australian Nutrition & Sports||AN1||Was due to list Apr 3; ASIC has issued an interim stop notice||Dairy formula||$5-$8m||20c|
|AXS Group||AXS||Offer date extended to April 19; Listing date extended to April 26||Software provider to the finance, insurance and funds sector||$7m||25c|
|Carnaby Resources||-||Prospectus not yet issued; Considering listing in 2019||Gold||-||-|
|Expose Resources||EXX||Listing date extended to April 10||Gold||$4.5m||20c|
|Frugl||Pre-IPO funding; planning listing||Grocery price comparison||-||-|
|Gold Tiger Resources||GRA||Offer closing May 10; Listing planned for May 22||Gold||$4-$5m||20c|
|Jobstore Group||JOB||Was due to list Dec 5||AI-powered recruitment||$6.6-8m||20c|
|Koligo Therapeutics||KOL||Closing date extended to April 23; Listing date extended to May 7||Regenerative medicine||$6-$7m||20c|
|Life360||360||Offer due to close May 8; Listing penned in for May 17||Location-based services applications||$145.43m||$4.79|
|Melior Resources||Seeking ASX-listing in 2019||Mineral sands||$5m|
|Powerwrap||PWL||Offer closes May 3; Due to list May 23||Investment software platform||$17.4m||35c|
|Rolek Resources||RLK||Backdoor listing cancelled||Manganese||$5m||2c|
|Trigg Mining||TMG||Due to list June 28||Potash||$4.5m||20c|
|Viva Leisure||VVA||Offer opens May 13; Due to list June 7||Health club operator||$20m||$1|
Over 60 per cent of the companies that have listed in the past year have lost between 3 and 86 per cent of their value.
There are about 23 companies that have done quite well, growing their value by between 5 and 420 per cent.
Buy now, pay later stock Splitit (ASX:SPT) still leads the pack, jumping 420 per cent to $1.04 since it made its debut in late January.
Bacteria fighter Next Science (ASX:NXS) has had also had a nice run since it lit up the boards in mid-April.
The company has rallied 147 per cent to $2.47.
Another recent debutante, Ecofibre (ASX:EOF) – which was the ASX’s first cannabis IPO of 2019 – has more than doubled its share price to $2.06 since it listed in late March.
Here’s a list of IPO performances over the past year:
Swipe or scroll for full table
|Listing Date||ASX Code||Company||IPO Price||Price May 7 (Intra-Day)||Percentage Change|
|09/21/2018||AGH||Althea Group Holdings||0.2||0.565||1.825|
|07/18/2018||KTD||Keytone Dairy Corp||0.2||0.46||1.3|
|12/19/2018||LIT LN||Litigation Capital Management||52||109||1.09615384615|
|12/13/2018||EMV||EMvision Medical Devices||0.25||0.395||0.58|
|05/16/2018||S66||Star Combo Pharma||0.5||0.7||0.4|
|11/14/2018||HM1||Hearts and Minds Investments||2.5||2.9||0.16|
|05/07/2019||MRZ||Mont Royal Resources||0.2||0.23||0.15|
|11/30/2018||RDC||Redcape Hotel Group||1.13||1.065||-0.0575221238938|
|10/12/2018||TGF||Tribeca Global Natural Resources||2.5||2.3||-0.08|
|07/13/2018||VEA||Viva Energy Group||2.5||2.19||-0.124|
|03/16/2018||EM2||Eagle Mountain Mining||0.2||0.155||-0.225|
|07/06/2018||WOA||Wide Open Agriculture||0.2||0.15||-0.25|
|10/23/2018||CRN||Coronado Global Resources||4||2.885||-0.27875|
|02/19/2019||CLB||Candy Club Holdings||0.2||0.1||-0.5|
|10/02/2018||SGI||Stealth Global Holdings||0.2||0.097||-0.515|
|11/08/2018||GSM||Golden State Mining||0.2||0.08||-0.6|
|04/11/2018||DXN||Data Exchange Network /The||0.2||0.067||-0.665|
|07/02/2018||ACT||Actcelerate International Group||0.1||0|
|08/30/2018||CM1||Coolgardie Minerals (In administration)||0.2||0|