ASX Capital Raise Roundup is a fortnightly look at ASX capital raisings.
Market volatility certainly increased this week as we enter the traditionally weaker September and October months. Many share prices are declining, albeit on low trading volumes.
What’s more, after a strong July/August time period, markets have been poised for a “sell the news” reaction.
On a positive note, global indices did have a favourable reaction to the US Federal Reserve Chairman Powell commenting towards a tapering of bond purchases and minimising the impact of the Chinese mega-developer Evergrande’s looming bankruptcy.
Investors have been concerned that clear signs of inflation would cause the US to quickly raise interest rates. However, Powell made it clear he is waiting for further signs of COVID-19 stabilisation.
Over the coming weeks, we will be closely monitoring the indices for signs of stabilisation and basing which could lead to a nice strong end of the year ramp. This roadmap (as opposed to the Melbourne one) would be an ideal way to end the year.
Placements this week
| Company Name | ASX Code | Market Cap | Issue Price | Price as of Midday Friday | % Change from issue price to current price | Stock halted? | Sector | Industry |
|---|---|---|---|---|---|---|---|---|
| SIPA RESOURCES LIMITED (XASX:SRI) | SRI | $10.95M | $ 0.0590 | $ 0.061 | 3.39% | Non-Energy Minerals | Precious Metals | |
| HEALTHIA LIMITED (XASX:HLA) | HLA | $183.1M | $ 1.800 | $ 2.040 | 13.33% | Health Services | Medical/Nursing Services | |
| BLUE ENERGY LIMITED (XASX:BLU) | BLU | $77.07M | $ 0.050 | $ 0.059 | 18.00% | Energy Minerals | Oil & Gas Production | |
| HILLGROVE RESOURCES LIMITED (XASX:HGO) | HGO | $49.6M | $ 0.052 | $ 0.056 | 7.69% | Non-Energy Minerals | Other Metals/Minerals | |
| KOGI IRON LIMITED (XASX:KFE) | KFE | $16.5M | $ 0.015 | $ 0.017 | 13.33% | Non-Energy Minerals | Steel | |
| TRANSURBAN GROUP (XASX:TCL) | TCL | $38.6B | $ 13.000 | $ 14.070 | 8.23% | Transportation | Other Transportation | |
| TECHNOLOGY METALS AUSTRALIA LIMITED (XASX:TMT) | TMT | $63.8M | $ 0.375 | $ 0.415 | 10.67% | Non-Energy Minerals | Other Metals/Minerals | |
| METALS AUSTRALIA LTD (XASX:MLS) | MLS | $8.4M | $ 0.0015 | $ 0.002 | 33.33% | Non-Energy Minerals | Other Metals/Minerals | |
| THREAT PROTECT AUSTRALIA LIMITED (XASX:TPS) | TPS | $4.8M | $ 0.005 | $ 0.020 | 300.00% | Non-Energy Minerals | Other Metals/Minerals | |
| STATE GAS LIMITED (XASX:GAS) | GAS | $64M | $ 0.320 | $ 0.375 | 17.19% | Energy Minerals | Integrated Oil | |
| JAXSTA LTD (XASX:JXT) | JXT | $19.8M | $ 0.060 | $ 0.065 | 8.33% | Electronic Technology | Electronic Equipment/Instruments | |
| APN INDUSTRIA REIT STAPLED UNT (OTCM:APNIF) | ADI | $755.7M | $ 3.450 | $ 3.510 | 1.74% | Finance | Real Estate Investment Trusts | |
| CENTURIA INDUSTR UNT (XASX:CIP) | CIP | $2B | $ 3.800 | $ 3.780 | -0.53% | Finance | Real Estate Investment Trusts | |
| RESOURCE BASE LIMITED (XASX:RBX) | RBX | $6.9M | $ 0.200 | $ 0.205 | 2.50% | Non-Energy Minerals | Precious Metals | |
| DC Two Ltd (XASX:DC2) | DC2 | $6.5M | $ 0.180 | - | Still in Halt | Technology Services | Data Processing Services | |
| ENGAGE:BDR LIMITED (XASX:EN1) | EN1 | $12.7M | $ 0.003 | $ 0.005 | - | Still in Halt | Commercial Service | Advertising/Marketing Services |
| SILEX SYSTEMS LIMITED (XASX:SLX) | SLX | $259.7M | $ 1.27 | $ 1.500 | - | Still in Halt | Electronic Technology | Semiconductors |
| ARMOUR ENERGY LIMITED (XASX:AJQ) | AJQ | $54M | $ 0.026 | $ 0.033 | - | Still in Halt | Energy Minerals | Oil & Gas Production |
| HIGH PEAK ROYALTIES LIMITED (XASX:HPR) | HPR | $9.8M | $ 0.052 | - | Still in Halt | Energy Minerals | Oil & Gas Production | |
| FE LIMITED (XASX:FEL) | FEL | $43.3M | $ 0.050 | $ 0.055 | 10.00% | Non-Energy Minerals | Precious Metals | |
| TESSERENT LIMITED (XASX:TNT) | TNT | $251.7M | $ 0.210 | $ 0.235 | - | Still in Halt | Technology Services | Information Technology Services |
| EAGLE MOUNTAIN MINING LIMITED (XASX:EM2) | EM2 | $146M | $ 0.650 | $ 0.720 | - | Still in Halt | Non-Energy Minerals | Other Metals/Minerals |
| 92 Energy Ltd (XASX:92E) | 92E | $30.1M | $ 0.720 | $ 0.765 | Still in Halt | Non-Energy Minerals | Other Metals/Minerals |
Sipa Resources Limited (ASX:SRI) has raised $1.5m through a share placement at 5.9c per share. At 180 Markets we were pleased with the high take-up given that this was only an extremely slight discount to the previous trading price. Funds from the placement will be used for the completion of the companies planned field program for the remainder of the current financial year. Sipa Resources is an Australian based exploration company focused on the discovery of gold and a base metal deposit primarily in Western Australia. We are looking forward to following on the progress of Sipa over the coming months.
Hillgrove Resources Limited (ASX:HGO) has raised $10m to new and existing institutional and sophisticated investors. Current shareholders will be able to participate through an SPP to raise a further $2m. After completion of the placement and SPP, in conjunction with existing cash reserves, the company will have over $15m to accelerate exploration and development activities. The company is expected to announce an upgrade to its resource estimate at its Kanmantoo Exploration Project.
Hillgrove’s Managing Director, Lachlan Wallace commented: “Drilling to date has demonstrated that the ore lodes mined in the Kanmantoo open pits continue below the base of the pits with grade, width and continuity to support underground development. I expect that recent drilling will increase the existing Resource and with this raising, we will continue drilling and accelerate development plans ahead of a planned mine recommencement next year I am confident that the planned works will create value for our Shareholders through the potential recommencement of copper and gold production at Kanmantoo, which enables us to unlock the value of the region through further advancement of the near mine and regional exploration projects.”
Kogi Iron Limited (ASX:KFE) has raised $1m to assist with the proposed acquisition of Macro Metals and advance its Pilbara Iron Ore Projects. The raise will be priced at 1.5c per share with Macro Metal shareholders given the option to subscribe for a total of 10m shares at 1.3c per share, expiring in 60 days. There are some quality names that have now entered the register from this acquisition. Highly regarded mining investors, including Tolga Kumova and Evan Cranston along with others are now shareholders. The proposed acquisition and placement are subject to shareholder approval at a meeting in November. Macro Metals has a number of interests in Iron Ore projects in the Pilbara and Western Australia.
State GAS Limited (ASX:GAS) has raised $8m through a placement to institutional and sophisticated investors. What was pleasing to see was that not only have 180 Markets investors entered the registry but so have a number of leading energy investors. The price of 32c per share represented a 16% discount to the closing price and a 21% discount to the 30-day VWAP. Funds accepted from investors will be used to commence production testing at Rougemont-2 and undertake additional exploration drilling in the highly prospective Rougemont CSG fairway in the Company’s 100% owned ATP 2062. Funds will also be used to undertake further production testing at Nyanda 8 and Serocold 1 in the adjoining Reid’s Dome Project (PL 231), expedite the development program for Reid’s Dome consistent with the Company’s aim to bring gas to market in 2023 and provide additional working capital in support of these operations and meet costs of the offer. Morgans Corporate and CPS Capital acted as joint lead management to the placement.
Silex Systems Limited (ASX:SLX) is currently in a trading halt for a $33m raise priced at $1.27 per share. The stock entered a halt during trade on Thursday and has not yet announced details of the raise to the market. The company will also include a $7m SPP to existing shareholders at the same price. Euroz Hartleys Limited and Shaw and Partners Limited are acting as joint lead managers to the raise. Funds will be used to advance the commercial demonstration of the Silex Uranium Enrichment Technology in the US. Currently Silex is offering investors unique exposure to several growth markets including Uranium and Nuclear Fuel, Zero-Spin Silicon and Medical Isotopes.
FE Limited (ASX:FEL) has raised $5m through our friends at Evolution Capital. In what was of very high demand at 180 Markets, the 5c raise will also include 1:2 free attaching options to be listed, exercisable at 6c and expiring 24 months from the date of issue. The funds will be used for a copper asset acquisition mining operation at JWD, Yarram Drill Program as well as Working Capital. FEL will acquire a 60% interest in the assets of Gecko Mining which comprises 240km2 in the highly prospective Tennant Creek region of the Northern Territory. Post raise the company will have a market cap of $43m and cash of just under $11m. Exciting times for FE Limited.
Thinking about taking the IPO leap?
Hit the bourse this week
In what was a very flat week for IPOs we saw 5 new companies hit the bourse. The best performer has been Revolver Resources Holdings LTD (ASX:RRR) which is currently trading up almost 50% of its IPO price. Other companies listing was Iris Metals Limited (ASX:IR1) which traded at a slight premium, X2M Connect Limited (ASX:X2M) which has been flat and Widgie Nickel Limited (ASX:WIN) and Pearl Gull Iron Limited (ASX:PLG) also trading flat.
Next week we hope to see more excitement on the listing front. There are 8-9 companies expected to list and we wish all investors all investors good luck.
| Company Name | ASX Code | Listing Date | Issue Price | Price as of Midday Friday | Change from issue price to current price |
|---|---|---|---|---|---|
| Pearl Gull Iron Limited | PLG | 20/9/21 | $ 0.20 | $ 0.195 | -2.56% |
| Widgie Nickel Limited | WIN | 22/9/21 | $ 0.25 | $ 0.235 | -6.38% |
| X2M Connect Limited | X2M | 22/9/21 | $ 0.25 | $ 0.260 | 3.85% |
| Iris Metals Limited | IR1 | 23/9/21 | $ 0.20 | $ 0.195 | -2.56% |
| Revolver Resources Holdings Ltd | RRR | 23/9/21 | $ 0.20 | $ 0.320 | 37.50% |
Listing next week
| Company Name | ASX Code | Listing Date | Issue Price |
|---|---|---|---|
| Pacific Edge Limited | PEB | 27/9/21 | |
| Li-S Energy Limited | LIS | 28/9/21 | $ 0.85 |
| Touch Ventures Limited | TVL | 29/9/21 | $ 0.40 |
| Mitre Mining Corporation Limited | MMC | 30/9/21 | $ 0.200 |
| C29 Metals Limited | C29 | 1/10/21 | $ 0.200 |
| Besra Gold Inc | BEZ | 1/10/21 | $ 0.200 |
| West Cobar Metals Limited | WC1 | 1/10/21 | $ 0.200 |
180 Markets’ recent performers
| Company Name | ASX Code | Market Cap | Issue Price | Free Attaching Options | Price Midday Friday | % Change from issue price to current price |
|---|---|---|---|---|---|---|
| AUSTRALIAN VANADIUM LIMITED | AVL | $73.3M | $ 0.025 | 1:1 AVLOA | $ 0.023 | -8.00% |
| RENASCOR RESOURCES | RNU | $206.7M | $ 0.011 | 1:2 RNUOB | $ 0.145 | 1218.18% |
| BRYAH RESOURCES LIMITED | BYH | $11.2M | $ 0.075 | 1:1 BYHOA | $ 0.057 | -24.00% |
| VOLT RESOURCES LIMITED | VRC | $70.8M | $ 0.015 | $ 0.033 | 120.00% | |
| ALLIGATOR ENERGY LTD | AGE | $89.1M | $ 0.007 | 1:2 AGEOB | $ 0.080 | 1042.86% |
| PEPINNINI MINERALS LIMITED | PNN | $12.6M | $ 0.230 | $ 0.585 | 154.35% | |
| PNX METALS LIMITED | PNX | $29.2M | $ 0.006 | $ 0.007 | 16.67% | |
| INCA MINERALS LIMITED | ICG | $62.5M | $ 0.100 | 1:3 ICGOA + 1:3 ICGOB + 1:3 ICGOC | $ 0.137 | 37.00% |
| MOUNT BURGESS MINING N.L. | MTB | $4.93M | $ 0.008 | 1:2 MTBO | $ 0.006 | -25.00% |
| ECLIPSE METALS LIMITED | EPM | $68.9M | $ 0.015 | $ 0.063 | 320.00% | |
| REDSTONE RESOURCES LIMITED | RDS | $7.19M | $ 0.012 | $ 0.012 | 0.00% | |
| KORE POTASH PLC | KP2 | $9.89M | $ 0.020 | $ 0.022 | 10.00% |
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.