ASX Capital Raise Roundup: Choosing quality over quantity
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ASX Capital Raise Roundup is a weekly look at ASX capital raisings.
As we roll the clocks forward into Financial Year 2022 many of us start fresh, make our fiscal new year resolutions and watch for markets to also cooperate in our renewed endeavours.
However, when we look at history, the tendency is more a continuation of the same trends. In our current environment, this spells more capital raises for companies with higher quality uses, commodity projects in further advanced stages, and clear paths to revenue growth.
Businesses such as AVZ Minerals (ASX:AVZ) attracted strong interest at 180 Markets due to their large Manono Lithium Project where the Definitive Feasibility Study has already been completed.
Kaolin company Andromeda Metals (ASX:ADN) was also well supported as its end products already offtake agreements in place in the ceramics market with a large Japanese company.
Additionally, the capital raising prices for these transactions are taking place at good technical support levels, thus giving investors an extra degree of confidence.
In summation, the market for Placements is displaying quality over quantity with discerning investor interest for the “right” deal.
|Company Name||ASX Code||Market Cap||Issue Price||Price Midday Friday||% Change from issue price to current price||Stock halted?||Sector||Industry|
|ARDEA RESOURCES LIMITED (XASX:ARL)||ARL||$70.219M||$ 0.550||$ 0.560||1.82%||Non-Energy Minerals||Precious Metals|
|PROPTECH GROUP LIMITED (XASX:PTG)||PTG||$110.365M||$ 0.720||$ 0.775||7.64%||Commercial Services||Miscellaneous Commercial Services|
|ZINC OF IRELAND NL (XASX:ZMI)||ZMI||$8.237M||$ 0.050||$ 0.059||18.00%||Non-Energy Minerals||Other Metals/Minerals|
|TNT MINES LIMITED (XASX:TIN)||TIN||$15.428M||$ 0.150||$ 0.160||6.67%||Non-Energy Minerals||Other Metals/Minerals|
|APPLYFLOW LIMITED (XASX:AFW)||AFW||$10.871M||$ 0.005||$ 0.008||60.00%||NOTE: Entitlement Issue||Commercial Services||Personnel Services|
|ANDROMEDA METALS LIMITED (XASX:ADN)||ADN||$323.793M||$ 0.150||$ 0.165||10.00%||Non-Energy Minerals||Other Metals/Minerals|
|AVZ MINERALS LIMITED (XASX:AVZ)||AVZ||$464.986M||$ 0.130||$ 0.152||16.92%||Non-Energy Minerals||Precious Metals|
|Kinetiko Energy LTD. (XASX:KKO)||KKO||$64.699M||$ 0.100||$ 0.120||20.00%||Energy Minerals||Oil & Gas Production|
|NOVATTI GROUP LIMITED (XASX:NOV)||NOV||$155.498M||$ 0.550||$ 0.580||5.45%||Technology Services||Packaged Software|
|MAAS Group Holdings Ltd (XASX:MGH)||MGH||$1.494B||$ 5.500||$ 5.770||4.91%||Distribution Services||Wholesale Distributors|
|PILOT ENERGY LIMITED||PGY||$17.906M||$ 0.060||$ 0.082||36.67%||Energy Minerals||Oil & Gas Production|
|MATADOR MINING LIMITED||MZZ||$94.4M||$ 0.560||$ 0.480||-14.29%||Non-Energy Minerals||Precious Metals|
|BTC HEALTH LTD (XASX:BTC)||BTC||$17.475M||$ 0.070||$ 0.074||5.71%||Finance||Investment Managers|
|THORNEY TECHNOLOGIES LTD (XASX:TEK)||TEK||$155.6M||-||$ 0.430||-||Still in Halt||Process Industries||Industrial Specialties|
|TRAKA RESOURCES LIMITED (XASX:TKL)||TKL||$7.597M||$ 0.014||$ 0.017||-||Still in Halt||Process Industries||Industrial Specialties|
|METGASCO LTD (XASX:MEL)||MEL||$15.94M||-||$ 0.027||-||Still in Halt||Energy Minerals||Oil & Gas Production|
|CARPENTARIA RESOURCES LTD (XASX:CAP)||CAP||$85.633M||$ 0.150||$ 0.215||-||Still in Halt||Non-Energy Minerals||Steel|
In what was a very popular deal at 180 Markets, Andromeda (ASX: ADN)raised $30m through a placement at 15c per share. The raise will be followed by a $15m SPP at the same price as the placement. The funds will be used to meet the company’s share of long lead time processing plant equipment purchases, continued product development in the areas of ceramic, paint and coatings, concreate and HPA, contribute to ongoing research and development, accelerate exploration and ongoing working capital requirements. Canaccord Genuity and Taylor Collison are joint lead managers for this capital raise.
In what looks like a really interesting deal, Matador Mining (ASX:MZZ) raised $16m at a 28% premium to the closing price prior to the raise. At 180 Markets we have not seen a placement structured like this – in order to take advantage of overseas tax regulations.
It’s great to see Matador Mining will benefit immensely from overseas tax regulations. The company managed to receive a premium on the market price because the new shares were issued as “flow through shares”, under the income tax act in Canada. The funds will be used to expand and accelerate exploration activities at the company’s Cape Ray Gold Project, which is based in Canada.
In another raise done at a premium, Areda Resources (ASX:ARL) raised $5.7m at 55c per share which represented a slight premium to the closing share price. Petra Capital, who have been very active in the small and mid-cap space recently, were lead manager to this raise.
Comments from Managing Director Andrew Penkethman “We are delighted with the support for the Placement. Ardea welcomes our new sophisticated and professional investors to the Company and thanks Petra Capital for their strong support. The proceeds of the placement ensure Ardea is well funded to maintain momentum on accelerated Kalgoorlie Nickel Project feasibility study work streams.”
In another very popular raise on 180 Markets, Traka Resources (ASX:TKL) is raising $1.77m at 1.4c per share. The placement funds will be used for an upcoming drill program for the companies MTS amount, Cattlin project.
Traka will follow up the placement with an SPP at the same price so that existing shareholders can participate in the raise too. On June 22nd, Traka announced that the mineral resource estimate for the MAORI Queen and SIRDAR deposit were completed following a recent drill program. The company anticipates the next phase of drilling will commence in August.
AVZ Minerals (ASX:AVZ) has raised $40m from sophisticated, professional and institutional investors. Due to the heavily oversubscribed placement, the company decided to not go ahead with the planned SPP. This is a disappointing and frustrating outcome for current shareholders. Funds will be used to increase its AVZ’s interest in the Manono project from 60% to 75% by exercising the options it currently has over minority shareholder interest. Funds will also be used to negotiate project financing with an enhanced balance sheet position.
After just completing an entitlement offer, Tymlez (ASX:TYM) has placed another $1.08m to strategic investors. Mr James Kruger, who will be appointed strategic advisor to the company, has led the capital raise which will involve other sophisticated and professional investors as well.
“I see real opportunity for organisations that enable the transition of the energy markets. Tymlez has significant capability in this transition to assist asset owners, fund managers, and all manner of corporates up and down the supply chains,” Kruger said.
A long-standing senior executive at Macquarie Group, Kruger now sits on a number of boards and provides advisory services to several clean-tech businesses in the Asia-Pacific region.
|Company Name||ASX Code||Listing Date||Issue Price||Price as of 2pm Friday||Change from issue price to current price|
|WAM Strategic Value Limited||WAR||25/6/21||$ 1.250||$1.36||9%|
|Barton Gold Holdings Limited||BGD||28/6/21||$ 0.250||$ 0.200||-20%|
|Camplify Holdings Limited||CHL||28/6/21||$ 1.420||$ 1.310||-8%|
|Polymetals Resources Ltd||POL||29/6/21||$ 0.20||$ 0.160||-20%|
|PEXA Group Limited||PXA||1/7/21||$ 17.13||$ 17.420||2%|
|Australian Rare Earths Limited||AR3||25/6/21||$ 0.300||$0.80||166%|
|BlueBet Holdings Ltd||BBT||2/7/21||$ 1.140||$1.92||67%|
|29Metals Limited||29M||2/7/21||$ 2.000||$1.99||-0.5%|
|Clean TeQ Water Limited||CNQ||2/7/21||-||$0.545|
|Lode Resources Ltd||LDR||2/7/21||$ 0.200||$0.14||-30%|
|NexGen Energy (Canada) Ltd||NXG||2/7/21||$ 5.600||$6.50||16%|
|Tamboran Resources Limited||TBN||2/7/21||$ 0.400||0.37||-7.5%|
It has been a mixed week on the IPO front with many companies listing. 3bn giant PEXA Group (ASX:PXA) hit the bourse after raising just over $1bn at $17.13 per share. The company has had a very tight range since listing, trading as low at $16.40 and hitting highs of $17.80. PEXA Group is the operator of Australia’s leading digital property settlements platform.
In what was a very impressive listing Australian Rare Earths Limited (ASX:AR3)closed its first day on the ASX at 55c per share which was a massive 175% return for those that invested in the IPO. In what was an even better return, early investors in the company received shares at 2c per share which is a phenomenal outcome in any market environment. Well done to those that have participated.
Smaller listings including Barton Gold Holdings (ASX:BGD), Polymetals Resources (ASX:POL) and Lode Resources (ASX:LDR) all traded down in their first week on the market. Next week there are 15 new companies listing.
Shaun Factor, Co-founder of 180 Markets said: “While we are noticing investor fatigue in IPOs, our investors are still interested in specific new companies that are planning on listing. It will be interesting to see the on-market support for all these new companies.”
|Company Name||ASX Code||Listing Date||Issue Price|
|OZZ Resources Limited||OZZ||5/7/21||$ 0.200|
|Askari Metals Limited||AS2||5/7/21||$ 0.200|
|Ballymore Resources Limited||BMR||5/7/21||$ 0.200|
|Lumos Diagnostics Holdings Limited||LDX||5/7/21||$ 1.250|
|Gold 50 Limited||G50||6/7/21||$ 0.250|
|Butn Limited||BTN||6/7/21||$ 0.500|
|Monger Gold Ltd||MMG||6/7/21||$ 0.200|
|Resource Base Limited||RBX||6/7/21||$ 0.200|
|Charger Metals NL||CHR||8/7/21||$ 0.200|
|Locksley Resources Limited||LKY||8/7/21||$ 0.200|
|Mt Monger Resources Limited||MTM||8/7/21||$ 0.200|
|Pacgold Limited||PGO||8/7/21||$ 0.250|
|Silk Logistics Holdings Limited||SLH||9/7/21||$ 2.000|
|Burley Minerals Ltd||BUR||9/7/21||$ 0.200|
|DRA Global Limited||DRA||9/7/21||$ 3.950|
|Company Name||ASX Code||Market Cap||Issue Price||Price Midday Friday||% Change from issue price to current price|
|BRYAH RESOURCES LIMITED (XASX:BYH)||BYH||$12.403M||$ 0.075||$ 0.059||-21.33%|
|VOLT RESOURCES LIMITED (XASX:VRC)||VRC||$83.311M||$ 0.015||$ 0.035||133.33%|
|PEPINNINI MINERALS LIMITED (XASX:PNN)||PNN||$12.328M||$ 0.230||$ 0.305||32.61%|
|MOUNT BURGESS MINING N.L. (XASX:MTB)||MTB||$6.073M||$ 0.008||$ 0.007||-12.50%|
|ALLIGATOR ENERGY LTD (XASX:AGE)||AGE||$87.619M||$ 0.007||$ 0.038||442.86%|
|PNX METALS LIMITED (XASX:PNX)||PNX||$32.87M||$ 0.006||$ 0.008||33.33%|
|REDSTONE RESOURCES LIMITED (XASX:RDS)||RDS||$10.066M||$ 0.012||$ 0.012||0.00%|
|KORE POTASH PLC (XLON:KP2)||KP2||$51.218M||$ 0.020||$ 0.015||-25.00%|
|ECLIPSE METALS LIMITED (XASX:EPM)||EPM||$42.107M||$ 0.015||$ 0.021||40.00%|
180 Markets was established by investors for investors, and has become Australia’s leading deal sharing platform, with a difference. In just 12 months, 180 Markets has established a 1800+ strong investor base that has enjoyed access over 650 placements on the ASX, including more than 30 placements where 180 Markets has been lead manager.
If you are interested in Placements, IPOs and RTOs sign up at www.180markets.com.au.
This article was developed by 180 Markets, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.