IPO Watch: Zoom2U notches a ton in swashbuckling opening innings while resources floats simmer
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Three new ASX stocks have had time to catch their breath and are ready for their first full week of trading after making their debuts on Friday.
Tech investors piled into SaaS delivery service IPO Zoom2U (ASX:Z2U), sending shares 115% higher in one of the great debut performances on the ASX this year.
Zoom2U rose more than 70% by lunch and kept the momentum going into the afternoon session like Indian opener Virender Sehwag in his swashbuckling prime.
Priced at a $34.7 million market cap after its $8 million, 20c a share float, its shares closed the day well up at an eye-catching 43c a pop.
It beat out resources floats Mt Malcolm Mines (ASX:M2M), which stormed out of the gates early before settling below its 20c issue price at 18.5c, and copper explorer Culpeo Minerals, which posted a more modest but still impressive 15% gain.
Zoom2u is led by CEO and tech entrepreneur Steve Orenstein, who previously flipped Sydney-based cloud IT business Connect2Field to New York listed Fleetmatics – later taken over by Verizon – in 2013.
With revenues of $2.8 million in FY21 and a CAGR of 71% between FY15 and last year, Zoom2u is targeting a greater share in the $5.6 billion Australian delivery services market.
It consists of two businesses. The Zoom2u platform, an Australia-wide marketplace connecting customers to local delivery drivers which is leveraged to the growth in e-commerce.
It also owns Locate2u, a delivery management system for businesses which operates in a global market estimated to be worth $6.9 billion and projected to grow to $13.8b by 2026.
““We’ve been delighted by the response the IPO has received from institutional, professional and retail investors which led to a significant level of demand, which was validation of the company’s performance to date and growth strategy,” Orenstein said.
“We would like to particularly thank the customers and drivers who have supported our products to date. As part of our growth strategy, we will continue to focus on investing to deliver an outstanding customer experience and explore ways to consistently improve.
“Zoom2u’s vision is to be the future leader in last mile delivery both in Australia and across the globe. The first two months of FY22 have started strongly with lockdowns in New South Wales and Victoria supporting growth in revenue, deliveries and GMV.
“We remain confident that the company will continue to drive growth, delivering sustained operational performance for shareholders in FY22 and beyond.”
Mt Malcolm Mines counts former Kin Mining (ASX:KIN) boss Trevor Dixon as its managing director and top shareholder, with more than 21.78% of the listed shares in the company after its $8 million IPO.
The gold explorer is hoping to strike paydirt in and around the multimillion ounce Leonora and Laverton gold fields in WA, home to major mining operations like the Granny Smith gold mine, Sunrise Dam, King of the Hills, Gwalia and Mt Morgans.
Its priority focus is the Malcolm gold project 10-25km east and northeast of Leonora, covering some 30km of mineralised structures dotted with historic gold workings and scratchings.
The company says its 151 tenements have never been consolidated and exploration by several companies have been “limited, erratic and often ineffectual” despite a number of gold assay results being reported across its prospects at 1g/t or more.
Its board believes there is the potential to host more than one economic gold deposit, but deep and extension drilling is required to define known gold anomalies.
“Management’s focus will now turn to the delivery of meaningful results across the 9 Prospect areas within the Malcolm Project confines, with an initial Gravity Survey at Calypso in preparation for RC drill testing and follow up diamond core drilling within the mineralised areas defined to date,” Mt Malcolm chairman Robert Downey said.
“We are well supported and well-funded to implement our work programs focusing on our target areas immediately.
“M2M look forward to providing our shareholders and investors with further news as the work programs advance.”
Culpeo Minerals (ASX:CPO) is looking for copper in the world’s richest copper jurisdiction, Chile.
They own three priority projects in the Cordillera region of Chile, one of the world’s great porphyry domains.
A drill rig and field crew have already been mobilised to its flagship Las Petacas project after raising $6 million in an IPO at 20c a share.
6000m of diamond drilling will be undertaken at Las Petacas, where Culpeo has identified a 6km-long mineralised trend with numerous high grade copper outcrops.
The project is located in the Atacama fault near the world class Candelaria mine where JV owners Lundin Mining and Sumitomo process some 75,000t of copper bearing ore a day.
The company’s MD is former X-Strata geo Max Tuesley.
“Today is a significant milestone for the Culpeo team, bringing together a portfolio of three highly prospective copper projects in Chile. All of these projects represent significant exploration upside in their own right,” he said.
“Chile is currently the world’s largest copper producer and consistently ranks as one of the best mining jurisdictions in the world.”