IPO Watch: Norm Seckold’s Nickel Mines launches $200m prospectus
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Nickel Mines has today released a prospectus to raise $200 million — the biggest Australian resources Initial Public Offering since Jupiter Mines in April.
As expected, Nickel Mines will offer 571 million shares at 35c apiece.
The offer opens on July 16 and closes July 23.
The shares are expected to trade on the ASX from August 2, when the stock is expected to have a market cap of $486 million.
Nickel Mines is an Indonesian explorer co-founded by successful mining investor Norm Seckold, who will emerge with about 9 per cent of the shares and move into the role of executive deputy chairman.
Sydney-based Nickel Mines owns an 80 per cent interest in the Hengjaya Mineralindo nickel mine in the Indonesian region of Central Sulawesi.
About half the money will be used to move to a controlling 60 per cent interest in a stainless steel plant under construction close to the Hengjaya nickel mine.
Stainless steel production accounts for about 70 per cent of all nickel, though its recent price rises are partly attributed to growing demand from electric car makers.
Stockhead columnists Tim Treadgold and Barry FitzGerald have recently covered the rise of nickel stocks:
Nickel Mines wants to expand stainless steel production at the plant to 3 million tonnes a year — and has an option to later move to full ownership.
It’s been just a few months since manganese producer Jupiter lit up the boards of the Australian bourse following a $240 million IPO.
That was the biggest mining IPO since Aston Resources listed on the ASX following a $400 million raising in 2010.
Jupiter was fairly disappointing however. The shares are now trading at 38.5c — just below the 40c offer price.
With Nickel Mines now attempting a big raising and subsequent listing, industry observers see this as a good indicator that risk appetite is loosening in the resources sector, however.
The prospectus can be downloaded here.