IPO Wrap: Who’s diving into the 2024 IPO wave with a January debut?
Despite a strong market performance in 2023 with the the benchmark S&P ASX 200 finishing the year with a gain of 12%, closing just 0.3% away from a record high, IPOs were muted.
Macroeconomic and geopolitical issues, including rising inflation and interest rates, had an impact on global stock markets in 2023 with companies delaying a listing.
Much of the gains in markets came later in the year with optimism inflation may finally be easing and hopes interest rates were reaching their peak with cuts in sight in 2024.
Looking at the last of December 2023 listings and Gina Rinehart-backed Brazilian Rare Earths (ASX:BRE) has had a strong start on the ASX.
BRE, which owns and operates a district scale Tier 1 Rare Earths Province in the state of Bahia, North Eastern Brazil, is up more than 27% since its listing on December 21, 2023.
Rinehart’s Hancock Prospecting and another family office reportedly bought in heavily to the pre-IPO round.
Arcadium Lithium (ASX:LTM) is up ~8% since its listing on December 22, 2023. LTM was established following a deal in May 2023 between lithium giant Allkem (ASX:AKE) and US-based Livent to combine in an all-stock merger of equals to create a global integrated lithium chemicals producer.
After winning support from Livent’s big US pension fund shareholder and AKE’s shareholders, the merged company was re-badged as Arcadium Lithium, and run by Livent CEO Paul Graves.
Starting off a new year there are several companies with planned listings in January.
All dates are sourced from the ASX website. They could change without notice.
Expected listing: January 5, 2024
IPO: $15 million at 25 cents/share
Lithium explorer Kali Metals was established from the spinout of a portfolio of lithium assets owned by ASX-listed Kalamazoo Resources (ASX:KZR), with assets in the Lachlan Fold Belt.
The Lachlan Fold Belt, which is best known for its copper, gold and silver production has also become a focus of lithium explorers, with juniors hoping to repeat the success of their west coast counterparts in WA.
Two of those projects have been sitting in the portfolio of Kalamazoo – the Jingellic and Tallangatta.
Both have now been turned into a new company called Kali Metals, along with KZR’s DOM’s Hill and Marble Bar projects in the Pilbara and the lithium rights at Karora Resources’ Higginsville tenement package in WA.
KZR will own 55% of the entity, which will see Graeme Sloan as MD and Luke Reinehr as chairman.
Bell Potter Securities and Canaccord Genuity are joint lead managers of the float.
Expected listing: January 16, 2024
IPO: $5.5 million at 20 cents/share
I88 is looking to capitalise on lifting uranium prices with its planned ASX listing mid-month.
Focused on lithium and uranium exploration, I88 has eight projects including a mix of brownfield and greenfield assets in Canada and Western Australia.
Its WA lithium projects include Pegasus, Parna and Yeelirrie. In Canada it has the Des Herbiers Project and Valor projects in Quebec, the Tinco Project in Saskatchewan and Portland Creek Uranium Project (Newfoundland and Labrador) along with the Paterson Lake Project (Ontario).
Sixty Two Capital is lead manager of the float.
Expected listing: January 18, 2024
IPO:$6 million at 20 cents/share
The gold explorer with projects in Queensland, WA and NSW was down to list on the local bourse in October 2023. In the last four years, the company says it has acquired four projects with high prospectivity including Dooloo Creek and Alma in Queensland, Crossways in Western Australia, and Neila Creek in NSW.
GGR says each of these projects offers substantial opportunities for gold resources, including high-grade copper. The explorer has conducted extensive drilling and sampling at Dooloo Creek, yielding impressive results over the past two years.
There are plans for further drilling across all GGR projects, with an immediate focus on Neila Creek and ongoing efforts at Dooloo Creek.
K S Capital is lead manager of the float.