• This week saw the biggest IPO listing of 2023 in the form of chemicals supplier, Redox
  • Another debutant this week was Australian Critical Minerals
  • We take a look at the upcoming ASX IPO listings in July

Redox’s IPO debut disappoints

Chemicals distributor Redox’s (ASX:RDX) $1.3 billion IPO listing on Monday was the biggest to have hit the ASX since infrastructure stock Ventia Services’ (ASX:VNT) listing in November 2021.

But it wasn’t a day early Redox investors had hoped for, with the share price closing the session -5% below the IPO price.

Redox was founded in 1965 by Roland Coneliano in Minto, NSW.

Coneliano and his family have grown the company into the biggest supplier of chemicals for crop protection, food and beverage, and the plastics industries.

Coneliano – of Egyptian heritage – is said to have used his extensive contacts and personal relationships across Europe to establish a business bridging continents at a time when communication across continents was difficult.

He retired after 50 years at the helm in 2015 and died in 2017.  The company’s CEO and managing director is now his grandson Raimond Coneliano, who recently replaced Roland’s son Robert who retired.

Although the family story is inspiring, analysts believe that Redox’s less than buoyant debut will further discourage an already sluggish IPO market.

“It doesn’t bode well… We all thought it would be a pretty good IPO. Ultimately, it shows a lack of confidence among investors,” says Tribeca fund manager,  Jun Bei Liu.

Meanwhile, another debutant this week was Australian Critical Minerals (ASX:ACM).

The ACM share price is currently trading at 21c, higher than its IPO price of 20c.

The junior explorer has a multiple mineral-exploration strategy focussed on lithium and REE.  The company has six project areas across an impressive 1,861km2 of prospective tenements in the Tier-1 mining jurisdiction of Western Australia.

 

How ASX IPO listings in 2023 are faring

Code Name IPO Price Current Price Return Day 1 return Market cap Listing date
LM1 Leeuwin Metals $0.25 $0.43 72.00% -4.00% $19.26m 29/03/2023
AUG Augustus Minerals $0.20 $0.33 62.50% 7.50% $26.2m 25/05/2023
DYM Dynamic Metals $0.20 $0.27 35.00% -5.00% $9.45m 16/01/2023
EG1 Evergreen Lithium $0.25 $0.33 32.00% 20.00% $18.56m 11/04/2023
NGX NGX $0.20 $0.23 15.00% 25.00% $20.84m 16/06/2023
DY6 Dy6 Metals $0.20 $0.21 2.50% 17.50% $7.91m 29/06/2023
ILT Iltani Resources $0.20 $0.20 0.00% 15.00% $8.36m 30/06/2023
HTM High-Tech Metals $0.20 $0.20 0.00% 2.50% $4.93m 23/01/2023
PL3 Patagonia Lithium $0.20 $0.19 -7.50% 10.00% $9.07m 31/03/2023
RDX Redox $2.55 $2.35 -7.85% -5.00% $1.23bn 03/07/2023
ACE Acusensus $4.00 $3.39 -15.30% 0.00% $85.53m 12/01/2023
SQX SQX Resources $0.20 $0.12 -42.50% -15.00% $2.88m 20/02/2023
GHY Gold Hydrogen $0.50 $0.28 -45.00% 2.00% $15.65m 13/01/2023
ADC Acdc Metals $0.20 $0.09 -56.50% 0.00% $4.07m 17/01/2023
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Leeuwin Metals (ASX:LM1) has been the best performing ASX IPO so far this year, with a gain of over 70% on the listing price.

Leewin explores critical metals vital for the advancement of electric vehicles and renewable energy.

It has projects located in Canada and Western Australia which are highly prospective for nickel, copper, PGEs, and lithium.

Within six weeks of listing, Leeuwin Metals has kicked off a 5,000m diamond drilling program targeting high-grade nickel, copper, and PGE sulphide mineralisation.

Augustus Minerals (ASX:AUG) has also seen its share price surging by over 60% since listing.

The company owns 3,600km2 of ground in the red-hot Gascoyne region of WA. The Gascoyne has been in the headlines for a slew of lithium and rare earths discoveries, most notably Delta Lithium’s (ASX:DLI) ‘district scale’ Yinnetharra play.

As an early mover into the Gascoyne, AUG was able to pick up some prime ground along the Ti Tree shear zone with a bunch of high priority lithium, REE and copper targets to test with planned extensive drilling campaigns.

 

Upcoming ASX IPO listings in July

All dates are sourced from the ASX website. They could change without notice.

 

Chilwa Minerals (ASX:CHW)

Expected listing: July 5
IPO: $8m at $0.20

Chilwa was formed for the purpose of acquiring the Lake Chilwa Heavy Mineral Sands Project in Malawi, Africa, from Luso Global Mining BV.

The acquisition meant that Chilwa has an advanced stage heavy mineral sands exploration project in the eastern Zomba district in Malawi near the border of Mozambique.

The project has an inferred category JORC compliant (2012) Mineral Resource estimate, completed concept studies and key mineralogical and metallurgical test work.

 

Ashby Mining (ASX:AMG)

Expected listing: July 14
IPO: $15m at $0.20

AMG is developing a gold production business in the Charters Towers region in Northern Queensland and has secured rights to a land package covering over 600km2 containing historical mines, mineral resources, highly prospective exploration potential and a gold processing plant.

The 340Ktpa Blackjack Processing Plant is a conventional Carbon in Pulp (CIP) plant, located 15 minutes from Charters Towers.

The Far Fanning gold project lies on a permitted Mining Lease with historical production of 47,200oz gold from 664,000t of ore at average 2.2g/t gold. The main historical open pit is only 30m deep and last operated in 2005.

The JORC (2012) resource was updated in 2021 to 2.55Mt at 1.8g/t for 147,000oz gold.

The company is presently undertaking programs to improve the confidence in the Far Fanning resource estimate through verification and infill drilling which will support a further resource update, feasibility study and commencement of mining operations.

 

At Stockhead we tell it like it is. While Leeuwin Metals is a Stockhead advertiser, it did not sponsor this article.

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