Megado IPO closes early after ripping to $6M oversubscription
Special Report: Megado Gold closed its IPO early due to oversubscription. The initial offering was exhausted as investors continued to drive gold exploration for ASX hopefuls.
The Initial Public Offering was able to raise $6 million following strong support from institutional and retail investors. Some 25 million shares were snapped up at the share price of 20c to raise the minimum $5 million required, with an additional $1 million then procured in oversubscriptions.
Megado Gold Limited (ASX: MEG) expects to list mid-October with an initial share holding of 71 million ordinary shares, valuing the company at $14.2 million.
The strong demand for the IPO reflected the sustained gold environment and global equity interest in mining opportunities within under-explored, but mineral rich regions of the African continent.
Holding five exploration permits for prospective gold tenements covering 511sqkm in Southern and Western Ethiopia, Megado Gold will begin its maiden drilling program once listed.
In just 18 months since it was established, Megado has developed key assets within the Arabian-Nubian shield. The company has secured 100% ownership of the Mormora, Dawa and Chakata projects as well as partnerships with local Ethiopian investors at the Babicho and Chochi projects, holding 80% ownership.
An additional application for 100% ownership of the Dermi Dama licence covering 227 sqkm is expected to be awarded.
Megado Gold executive director Dr Chris Bowden said the company was well advanced with its planned field work and would be on the ground within weeks to drive the exploration agenda, as outlined in the IPO prospectus.
Having already identified numerous high priority gold targets, the company has now made the important steps of recruiting five experienced Ethiopian geologists and engaging with drilling contractors.
“Megado is extremely fortunate to have in-country personnel on its exploration team who are well acquainted with exploring in Ethiopia,” Dr Bowden said.
“Our current aggressive field work underway and impending drilling campaign schedule points to the significant news flow post listing – and that’s exciting for a newly listed gold explorer in a significantly under-explored region.”
This article was developed in collaboration with Megado Gold Limited, 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.