Norm Seckold’s Nickel Mines has become the biggest Australian resources listing since April’s Jupiter Mines float after making its debut today following a two-week delay.
But it didn’t get off to a great start with its share price opening 14 per cent lower than its 35c issue price and sinking as low as 26c before recovering slightly to close at 28c – a 20 per cent discount to its IPO price.
By the closing bell 14.6 million shares worth $4.1 million changed hands.
Nickel Mines had been planning for an ASX debut on August 2 before the corporate regulator put an interim stop-order on the float last month. The stop-order was removed when a replacement prospectus was issued on August 7.
Late on Thursday Nickel Mines confirmed the listing would go ahead on Monday at 12pm AEST under the code NIC.
The Indonesia-focused explorer raised $200 million selling shares at 35c apiece — and is expected to have a market cap of $486 million.
It’s the biggest resources float since the Jupiter Mines $240 million IPO in April. Jupiter is now trading around 35c compared to its 40c issue price.
Mining investor Norm Seckold will emerge with about 9 per cent of the shares and move into the role of executive deputy chairman.
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Sydney-based Nickel Mines owns an 80 per cent interest in the Hengjaya Mineralindo nickel mine in the Indonesian region of Central Sulawesi.
About half the money 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.
Stainless steel production accounts for about 70 per cent of all nickel, though its recent price rises are partly attributed to growing demand from electric car makers.
Nickel Mines wants to expand stainless steel production at the plant to 3 million tonnes a year — and has an option to later move to full ownership.