IPO Watch: Rolek Resources couldn’t get its backdoor listing over the line
Link copied to
Manganese hopeful Rolek Resources hasn’t been able to raise the cash it needs to complete its backdoor listing through the shell of Shaw River Manganese (ASX:SRR).
The company was aiming to raise $5m through the issue of 250 million shares at 2c each.
But Rolek’s offer closed under-subscribed.
The company said it was disappointed with the outcome and that it would be giving investors their cash back.
Stockhead has contacted Rolek to find out what its plans are now.
The Australian market is still quite subdued in 2019.
According to recent ASX stats, there were only five new listings in February compared to six in the same month last year.
There were also more delistings, with six companies leaving the ASX compared to four a year earlier.
The amount of capital raised in February dropped 58 per cent year-over-year to $1.3 billion.
Australian Industrial Minerals has pulled its planned $5m IPO.
The company was raising the cash to fund the development of its Harts Range mine, which hosts garnet and hornblende.
These minerals are used in the industrial abrasive industry because they are low cost.
Garnet is typically used in abrasive blast cleaning, waterjet cutting and water filtration applications, while hornblende is usually only used in abrasive blast cleaning.
Stockhead is seeking comment from the company.
Grassroots Developments, a company that develops childcare centres and sells them to Think Childcare, is also no longer looking at a listing.
The AFR last year named the company as a potential ASX debutante, but Grassroots Developments has since decided not to go ahead with becoming a public company.
There is an influx of gold players looking to get themselves listed.
It’s not surprising given the gold price is still well above $1800 Aussie an ounce.
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||Listing extended to April 30||Supply chain delivery technology||$16-$25m||40c|
|Australian Industrial Minerals||AAM||Withdrawn||Industrial minerals||$5m||25c|
|Australian Nutrition & Sports||AN1||Due to list Apr 3||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||-||-|
|Ecofibre||EOF||Due to list Mar 29||Hemp products||$15-$20m||$1|
|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|
|IXT||IXT||Was due to list Dec 21||Services and software||$7m||20c|
|Jobstore Group||JOB||Was due to list Dec 5||AI-powered recruitment||$6.6-8m||20c|
|Koligo Therapeutics||KOL||Listing extended to April 5||Regenerative medicine||$6-$7m||20c|
|Melior Resources||Seeking ASX-listing in 2019||Mineral sands||$5m|
|Mont Royal Resources||MRZ||Offer closing April 8; Listing set for May 15||Gold||$5m||20c|
|Next Science||NXS||Due to list April 29||Bacteria treatments||$35m||$1|
|Ricegrowers||SGL||Due to list April 8||Manufacturing of rice products||No cash being raised||-|
|Rolek Resources||RLK||Backdoor listing via Shaw River (ASX:SRR); Listing expected by April||Manganese||$5m||2c|
|Trigg Mining||TMG||Postponed until 2019||Potash||-|
|XS Resources||XS1||Listing extended to Mar 4||Precious, base metals||$4.5m||20c|
Mont Royal Resources is paving its way to the ASX with a $5m IPO priced at 20c a share.
Mont Royal is starting life with 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.
Newly formed explorer Gold Tiger Resources is also heading for the ASX after launching its own $5m IPO.
The company’s focus is the Credo gold project, about 50km from Coolgardie in the Goldfields region of WA.
The still volatile market has been reflected in the share price performance of a large chunk of recent ASX debutantes.
Here’s a list of IPO performances over the past year:
Swipe or scroll for full table
|Listing Date||ASX Code||Company||IPO Price||Intra-Day Price Mar 26||Percentage Change|
|02/19/2019||CLB||Candy Club Holdings||0.2||0.155||-0.225|
|12/13/2018||EMV||EMvision Medical Devices||0.25||0.38||0.52|
|11/30/2018||RDC||Redcape Hotel Group||1.13||1.05||-0.070796460177|
|11/14/2018||HM1||Hearts and Minds Investments||2.5||2.8||0.12|
|11/08/2018||GSM||Golden State Mining||0.2||0.091||-0.545|
|10/23/2018||CRN||Coronado Global Resources||4||2.94||-0.265|
|10/02/2018||SGI||Stealth Global Holdings||0.2||0.12||-0.4|
|09/21/2018||AGH||Althea Group Holdings||0.2||0.37||0.85|
|08/30/2018||CM1||Coolgardie Minerals (suspended since Feb 5)||0.2||0.052*||-0.74|
|07/13/2018||VEA||Viva Energy Group||2.5||2.49||-0.004|
|07/06/2018||WOA||Wide Open Agriculture||0.2||0.185||-0.075|
|05/16/2018||S66||Star Combo Pharma||0.5||0.59||0.18|
|04/11/2018||DXN||Data Exchange Network /The||0.2||0.096||-0.52|
Over 64 per cent of the companies that made their ASX debut in the past 12 months are trading underwater.
Smiles Inclusive (ASX:SIL) is still the worst performing stock, having depreciated 82 per cent to trade at 18c since it lit up the boards in late April last year.
In November last year, the dental practice operator told investors that it would book a $2.3m profit in FY19, but by the end of February the company had updated that figure to an expected loss of up to $1m.
Very few resources players have found themselves in the top performers. About half of the companies that listed in the past year and have lost ground are in the resources sector.
Gold explorer Bounty Mining (ASX:B2Y) has slid over 80 per cent to 6.9c, while gold producer Coolgardie Minerals (ASX:CM1) is down 74 per cent at 5.2c and cobalt hopeful Rafaella Resources (ASX:RFR) has tumbled 62.5 per cent to 7.5c.
Coolgardie only listed on the ASX at the end of August last year but has already gone into administration.
The junior had started mining at its Geko gold project in Western Australia, but encountered issues that resulted in a budget blowout.
Coolgardie appointed administrators at the start of March and is now considering all its options, including selling the Geko mine, to get cash fast.
On a more positive note, newly-listed payments provider Splitit (ASX:SPT) remains uncontested as the top performing IPO over the past year.
While it has retraced some of its gains — it was a 10-bagger at one point — Splitit is still over 450 per cent higher than when it listed in late January. It is trading at around $1.10.
Security Matters (ASX:SMX) is also an outlier, with a 205 per cent spike since it listed in mid-October last year to reach 61c.
The company revealed last week that the Perth Mint will leverage Security Matters’ blockchain-based tracking technology to protect its gold, from mining to minting.
Nickel Mines (ASX:NIC) leads the miners with a 23 per cent climb to 43c. The company made its debut in August last year.