IPO Watch: Sultan Resources gets the greenlight to debut on the ASX
Base and precious metals explorer Sultan Resources is set to ring the ASX bell on Thursday.
The company will begin trading at 1pm AEST under the ticker “SSZ” after it completed an oversubscribed initial public offering.
The initial target was $4.5 million, but strong interest saw Sultan raise $4.8 million, managing director Steven Groves told Stockhead.
“It was quite a strong response in the current market,” he said.
“I think it’s still quite tough but if you’ve got a good case people are still willing to put their money in.”
Sultan will have a market value of about $6.4 million on listing.
The company is building up a portfolio of projects prospective for gold, copper, nickel and cobalt in Western Australia.
It has acquired the East Tallering, Dalwallinu, Thaduna and Lake Grace projects from Galahad Resources.
The first cab off the rank post-listing will be the Thaduna project that lies along strike from Lodestar Minerals (ASX:LSR) recent copper-gold discoveries at its Ned Creek project.
“The same geological trends and structures all seem to be trending towards our ground up there so it’s a logical place for us to start,” Mr Groves said.
Sultan plans to undertake aircore drilling to determine whether the same geology and gold anomalism continues into its Thaduna project.
IPO market picking up
Small caps have led the way in IPOs this year, while large floats have dragged down the team, Deloitte reported on Tuesday.
While larger cap listings acted as a drag, small caps — which achieved a combined market capitalisation of $763.7 million — were in positive territory, Deloitte said.
A pick-up in IPO activity was expected in the second half.
“We are heading into a fairly exciting period of strong activity levels … with the demand for public market listings continuing to outweigh the supply of assets,” said Ian Turner, Deloitte’s National Leader for Mergers and Acquisitions.
Tempus Resources is set to light up the boards today after raising $5 million.