IPO Watch: Regulator halts $200m Nickel Mines float
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A spokesperson for regulator ASIC told Stockhead that it does not usually release the reason for the stop order.
“The company is given an opportunity to address our concerns by lodging a replacement or supplementary prospectus or deciding to go to a final hearing,” the spokesperson said.
A stop order allows ASIC to prevent offers being made under a disclosure document if it believes:
— the disclosure document contains a misleading or deceptive statement;
— the disclosure document contains an omission of information required to be provided under the legislation, or
— a new circumstance has arisen since the disclosure document was lodged.
ASIC says that for it to use a stop order, it must also believe that a situation is materially adverse from the point of view of the investor.
An interim stop order may be made for up to 21 days, during which time a hearing must be held to give the company a chance to put its views to an independent delegate.
Nickel Mines is hoping to light up the boards of the ASX on August 2.
The Sydney-based Indonesian explorer was co-founded by successful mining investor Norm Seckold, who will emerge with about 9 per cent of the shares and has taken up the role of executive deputy chairman.
Nickel Mines owns an 80 per cent interest in the Hengjaya Mineralindo nickel mine in Central Sulawesi.
About half the money raised under the IPO 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.
Nickel Mines has been contacted for comment.