ASX Capital Raise Roundup: TGIF (Thank God it’s FrIPOday)
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ASX Capital Raise Roundup is a fortnightly look at ASX capital raisings.
Investors were taken by surprise, in particular, with Thursday’s selloff. There were a number of explanations, but the biggest reasons resonating with us are seasonality and research reports cutting forecast growth rates.
September is historically one of the weakest performance months and investors are proceeding with caution. Additionally, a number of large investment banks including Goldman Sachs cut their forecast global growth rates. Given the strong market share prices movements over the past 3 weeks, the “sell the news” reaction was sharp and swift!
It has been a rollercoaster ride for our market this week. The first three days saw some exciting moves, especially in small cap world. Lithium uranium and rare earth stocks were again the talk of the town. There were some wild movements that excited investors and we were all excited that things were really heating up again.
Just as that happens BANG! Thursday brought one of the biggest falls that we have seen in a long time.
The ASX 200 fell almost 2%, leaving no sector unscathed. All 11 sub-sectors finished in the red. Hong Kong stocks had their worst day in almost 3 weeks as tech shares tumbled on Chinas tightening on gaming companies.
Things were tough, as 180 Markets Investor Leonard can attest: “My portfolio on Thursday was terrible, every share that I was so pleased with from Monday, Tuesday and Wednesday fell. I don’t enjoy this extra stress”, he said.
|Company Name||ASX Code||Market Cap||Issue Price||Price as of Midday Friday||% Change from issue price to current price||Stock halted?||Sector||Industry|
|MINCOR RESOURCES NL (XASX:MCR)||MCR||$564.2M||$ 1.280||$ 1.355||5.86%||Non-Energy Minerals||Other Metals/Minerals|
|GALILEO MINING LTD (XASX:GAL)||GAL||$41.5M||$ 0.260||$ 0.290||11.54%||Non-Energy Minerals||Other Metals/Minerals|
|1ST GROUP LIMITED (XASX:1ST)||1ST||$7.4M||$ 0.016||$ 0.0160||0.00%||Electronic Technology||Computer Communications|
|GREENWING RESOURCES LTD (XASX:GW1)||GW1||$31.5M||$ 0.240||$ 0.25000||4.17%||Non-Energy Minerals||Other Metals/Minerals|
|STRATEGIC ENERGY RESOURCES LIMITED (XASX:SER)||SER||$11.8M||$ 0.044||$ 0.0530||20.45%||Producer Manufacturing||Electrical Products|
|CAULDRON ENERGY LIMITED (XASX:CXU)||CXU||$19.1M||$ 0.034||$ 0.039||14.71%||Non-Energy Minerals||Other Metals/Minerals|
|AUSSIE BROADBAND LIMITED (XASX:ABB)||ABB||$898.4M||$ 4.000||$ 4.850||21.25%||Communications||Specialty Telecommunications|
|DXN LIMITED (XASX:DXN)||DXN||$11.05M||$ 0.009||$ 0.010||11.11%||Technology Services||Data Processing Services|
|AMANI GOLD LIMITED (XASX:ANL)||ANL||$24.7M||$ 0.001||$ 0.002||100.00%||Non-Energy Minerals||Precious Metals|
|GOLDEN MILE RESOURCES LTD (XASX:G88)||G88||$7.6M||$ 0.050||$ 0.058||16.00%||Non-Energy Minerals||Precious Metals|
|FORBIDDEN FOODS LIMITED (XASX:FFF)||FFF||$12.8M||$ 0.240||$ 0.255||6.25%||Consumer Non-Durables||Food: Major Diversified|
|BASTION MINERALS LIMITED (XASX:BMO)||BMO||$13.7M||-||$ 0.240||-||Still in Halt||Non-Energy Minerals||Precious Metals|
|VEEM LTD (XASX:VEE)||VEE||$180.7M||$ 1.180||$ 1.390||-||Still in Halt||Producer Manufacturing||Industrial Machinery|
|COMET RIDGE LTD (XASX:COI)||COI||$76.3M||$ 0.0825||$ 0.097||17.58%||Energy Minerals||Oil & Gas Production|
|HAZER GROUP LIMITED (XASX:HZR)||HZR||156.2M||-||$ 1.075||-||Still in Halt||Process Industries||Chemicals: Specialty|
|ACCELERATE RESOURCES LIMITED (XASX:AX8)||AX8||$6.5M||-||$ 0.042||-||Still in Halt||Non-Energy Minerals||Precious Metals|
|EQ RESOURCES LIMITED (XASX:EQR)||EQR||$59.1M||-||$ 0.045||-||Still in Halt||Non-Energy Minerals||Other Metals/Minerals|
|NEUREN PHARMACEUTICALS LIMITED (XASX:NEU)||NEU||$257.8M||$ 2.050||$ 2.250||-||Still in Halt||Health Technology||Biotechnology|
|NEW TALISMAN GOLD MINES LIMITED (XNZE:NTL)||NTL||$8.7M||$ 0.002||$ 0.003||-||Still in Halt||Communications||Specialty Telecommunications|
|DREADNOUGHT RESOURCES LTD (XASX:DRE)||DRE||$96.1M||-||$ 0.037||-||Still in Halt||Non-Energy Minerals||Precious Metals|
|GLOBAL TECHNOLOGIES, LTD. (OTCM:GTLL)||GDC||$133.2M||-||$ 2.030||-||Still in Halt||Finance||Financial Conglomerates|
|ANSON RESOURCES LIMITED (XASX:ASN)||ASN||$96.8M||$ 0.091||$ 0.110||-||Still in Halt||Non-Energy Minerals||Steel|
|AMA GROUP LIMITED (XASX:AMA)||AMA||$313.5M||$ 0.375||$ 0.420||12.00%||Consumer Durables||Automotive Aftermarket|
|AFRICAN GOLD LTD. (XASX:A1G)||A1G||$30.1M||$ 0.150||$ 0.305||103.33%||Non-Energy Minerals||Precious Metals|
|Centuria Office REIT||COF||$1.278B||$ 2.500||$ 2.455||-1.80%||Finance||Real Estate Investment Trusts|
|IMRICOR MEDICAL SYSTEMS, INC. (XASX:IMR)||IMR||$150.8M||$ 1.000||$ 1.200||20.00%||Health Technology||Medical Specialties|
180 Markets was excited to have raised $1.2m for gold and uranium company Cauldron Energy Limited (ASX:CXU). The placement was heavily oversubscribed and was closed after just 45 minutes of being open on our platform.
Ariella Grunfeld, Analyst at 180 Markets said: “In what is becoming an extremely popular method of raising capital on 180, investors are now reaching out to us and cornerstoning their own raises. They realise that our knowledge and connections can help them get the raise done efficiently and at a good price. Good luck to all those that participated in the placement”.
The funds will be used to advance the company’s exciting suite of uranium, sand and gold projects.
Mincor Resources NL (ASX:MCR) has raised $65m to further strengthen and de-risk its production runway at Kambelda. Global natural resource fund cornerstoned the raise with a $30m investment and the placement introduced new high-quality institutions to the register. The price of the placement was $1.28 per share which represented an 11% discount to the last closing price of the shares prior to the trading halt.
Commenting on the Capital Raising, Mincor’s Managing Director, David Southam, said: “This is an important capital raising which puts Mincor in an enviable position – further strengthening and de-risking our balance sheet as we begin the final countdown to nickel production at Kambalda and allowing us to implement some key measures to enhance our operations and put our business in the best position for future growth.”
1st Group Limited (ASX:1ST) has launched a non-renounceable entitlement offer on a 1:3 basis to current shareholders. The price will be at 1.6c per share which was done at an 18% discount to the companies 30-day VWAP. 1st Group is an ASX listed digital health group building Australia’s leading health services marketplace, MyHealth1st.com.au, Australia’s online pet service marketplace PetYeti.com.au and corporate and government solutions platform GoBookings.com. These integrated platforms provide an easy to use online search and appointment booking service and offer a range of value-added apps and services that facilitate digital patient and customer engagement.
Amani Gold Limited (ASX:ANL) has received commitments to raise $7m at an issue price of 0.1c per share. As expected the placement was strongly supported by new and existing investors and was heavily oversubscribed. As well as this, investors will receive a free 1:1 attaching option that will be issued post meeting along with the second tranche. It is not surprising that the raise was so heavily oversubscribed and extremely popular on 180 Market because the shares have been trading at double the price with substantial volume. People who bought the shares at 0.2c on the market (and there were a lot of them) over the past few weeks would’ve been extremely disappointed that the raise was done at such a massive discount and included options too. WE JUST DON’T GET IT. #shocked.
Forbidden Foods Limited (ASX:FFF) has raised $5.5m through a capital raise managed by BW Equities. The raise will be used to acquire Blue Dinosaur, a highly complimentary plant-based snack bar company with strong brand awareness and distribution into the health food market. The acquisition will drive international growth and will extend distribution networks. The placement was priced at 24c per share which was only a slight discount to the previous closing price. The placement will be over two tranches, and the company will offer existing shareholders the right to participate through a SPP. The SPP will allow existing shareholders to acquire up to $30,000 at the same price as the placement.
In what was a surprising move to many in the market, Neuren Pharmaceuticals Limited (ASX:NEU) has entered a trading halt for a $20m capital raise. As well as this the company will offer existing shareholders the right to participate in an SPP which will be at the placement price too. NEu is currently sitting on a good cash balance so it therefore surprised investors that they took the opportunity to raise now, so close to phase three trials for its NNZ-2591 drug. However, given that the share price has pretty much doubled in the last four months, it is probably a movement which diversifies the risk characteristics of the company.
Hit the bourse this week
At 180 Markets we are calling today frIPOday. There are four new companies expected hitting the bourse today. At the time of writing, investors would be happy that Mt Malcolm Mines NL (ASX:M2M) was up 12% and Zoom2U Technologies Limited (ASX:Z2U) was up a massive 77% from its IPO price. Culpeo Minerals Limited (ASX:CPO) is currently matching up at 25c but has not opened yet. A great result for all invested and we hope the IPO market remains strong.
Next week is going to be a big week for IPOs. Nine companies will list throughout the week ranging from the copper sector to lithium, gold and Iron Ore. Clearly resource stocks are taking advantage of investor appetite across sectors and we hope the fun continues.
|Company Name||ASX Code||Listing Date||Issue Price||Price as of Midday Friday||Change from issue price to current price|
|Zoom2u Technologies Limited||Z2U||10/9/21||$ 0.20||$ 0.345||42.03%|
|X2M Connect Limited||X2M||10/9/21||$ 0.25||-|
|Mt Malcolm Mines NL||M2M||10/9/21||$ 0.20||$ 0.215||6.98%|
|Culpeo Minerals Limited||CPO||10/9/21||$ 0.20||-|
Listing next week
|Company Name||ASX Code||Listing Date||Issue Price|
|Legacy Minerals Holdings Limited||LGM||13/9/21||$ 0.20|
|Pearl Gull Iron Limited||PLG||13/9/21||$ 0.20|
|Heavy Minerals Limited||HVY||14/9/21||$ 0.20|
|Copper Search Limited||CUS||15/9/21||$ 0.35|
|Dalaroo Metals Ltd||DAL||15/9/21||$ 0.200|
|Star Minerals Limited||SMS||16/9/21||$ 0.200|
|SSH Group Ltd||SSH||17/9/21||$ 0.200|
|Koonenberry gold Limited||KNB||17/9/21||$ 0.200|
|Way 2 VAT Ltd||W2V||17/9/21||$ 0.200|
|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||$ 0.0220||-12.00%|
|RENASCOR RESOURCES||RNU||$206.7M||$ 0.011||1:2 RNUOB||$ 0.127||1054.55%|
|BRYAH RESOURCES LIMITED||BYH||$11.2M||$ 0.075||1:1 BYHOA||$ 0.050||-33.33%|
|VOLT RESOURCES LIMITED||VRC||$70.8M||$ 0.015||$ 0.031||106.67%|
|ALLIGATOR ENERGY LTD||AGE||$89.1M||$ 0.007||1:2 AGEOB||$ 0.057||714.29%|
|PEPINNINI MINERALS LIMITED||PNN||$12.6M||$ 0.230||$ 0.320||39.13%|
|PNX METALS LIMITED||PNX||$29.2M||$ 0.006||$ 0.006||0.00%|
|INCA MINERALS LIMITED||ICG||$62.5M||$ 0.100||1:3 ICGOA + 1:3 ICGOB + 1:3 ICGOC||$ 0.110||10.00%|
|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||$ 0.048||220.00%|
|REDSTONE RESOURCES LIMITED||RDS||$7.19M||$ 0.012||$ 0.012||0.00%|
|KORE POTASH PLC||KP2||$9.89M||$ 0.020||$ 0.0210||5.00%|
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.