IPO Watch: PEXA slightly drops on its ASX debut, but today’s other listing gains 80 per cent
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The ASX welcomed two new IPOs today. One was the biggest float in two years, but it was the smaller company that stole the show.
$3 billion Property settlements platform Pexa Group Limited (ASX:PXA), entered the bourse at 1pm and fell slightly from its $17.13 IPO price although it ultimately closed slightly higher.
But listing earlier today was rare earths explorer Australian Rare Earths (ASX:AR3) gained 80 per cent.
While PEXA has been helped by the booming property market, its path to listing on the ASX has not come without hurdles.
It previously attempted to list back in late 2018 but pulled the float due to adverse share market conditions at the time.
And yesterday afternoon, the company saw an outage which saw members unable to log on for nearly 2 hours.
But with the journey complete, PEXA chairman Mark Joiner said he was delighted with the outcome of his company’s ASX IPO.
“Our listing today on the ASX marks another important milestone for PEXA, as we look to explore opportunities to take our experience and expertise into new markets in Australia and internationally,” he said.
PEXA released a trading update this morning in addition to its ASX IPO announcement.
The company said transaction volumes in the fourth quarter of FY21 were 4 per cent ahead of prospectus forecasts and over 48 per cent above the same period in FY20.
With a $13.5 million market cap Australian Rare Earths is a minnow but it easily outperformed PEXA and at 1pm (AEST) was today’s biggest winner.
This company’s Koppamurra project in South Australia and Victoria is, according to the company, Australia’s largest ionic clay hosted rare earth element (REE) deposit as well as one of only two exchange listed opportunities globally.
The other belongs to Uganda-based Ionic Rare Earths (ASX:IXR).
AR3 already has an inaugural JORC Inferred Mineral Resource of 39.9Mt at 725ppm TREO (Total Rare Earth Oxides) and is awaiting assay results from its latest drilling program some time this quarter.
“The company is focused on executing our growth strategy to ensure AR3 is in a position to become a strategic, independent and sustainable source of rare earth elements, which will play a critical role in the transition to green economies globally,” said non-executive chairman Dudley Kingsnorth.
“It is shaping up to be a busy second half of 2021 and we look forward to building on the strong foundation that has been established at Koppamurra.”