Leo Lithium’s (LLL) IPO investors were dealt a bitter pill yesterday, as trade opened on the ASX at 51 cents and fell as much as 31 per cent.
The company had raised $100 million through its 70-cent IPO.
The company listed to develop a large-scale, open-pit hard rock lithium mine in Mali with joint venture partner Ganfeng Lithium.
Leo Lithium has a market cap above $620 million and shares were trading at 51.5 cents as of 12:54 pm AEST.
Earlier in the week Odette Six Metals (OD6) launched on the ASX after raising $8 million at 20 cents per share.
It also took a hit on listing with shares trading down more than 25 per cent — priced between 14.5 and 17 cents.
OD6 is pursuing rare earth elements near Esperence in WA.
Cooper Energy (COE) supplies gas throughout the south east of Australia and it’s raising funds for the acquisition of Orbost Gas Processing Plant from the APA Group.
To fund the initial payment under the deal, it’s raising $244 million — $183 million through an institutional placement and the rest through a fully-underwritten retail entitlement offer priced at 24.5 cents.
That retail raise opens on Tuesday.
Cooper Energy has a $400 million market cap and shares were trading a cent below the offer price at 23.5 cents as of 1:06 pm AEST.
Urea project developer in South Australia, NeuRizer (NRZ), formerly Leigh Creek Energy, has raised $14.4 million through a private share placement to South Korean construction partner DL E&C Co.
Priced at 15 cents per share, the money will fund working capital and project costs leading to the project’s final investment decision which is expected early next year.
“They have obviously seen the potential of our project and they are very keen to increase their footprint,” corporate and investor relations representative Tony Lawry said.
“It’s very good for the company, because they’re (DL E&C Co.) what the market would call a strategic investor. This is done as a private placement, not as part of a capital raising. The price of the placement was yesterday’s (June 22) price. Even though it’s a discount to a long term VWAP (volume-weighted average price), this is a significant placement with a reliable top-tier infrastructure partner so it’s very good for the company and shareholders.”
The news comes less than a week after NeuRizer announced it had struck a deal with the South Australian Government to use existing state-owned infrastructure in the northern mining town of Leigh Creek, including an administration building, warehouses, storage sheds, wash facilities, grantry crane and groundwater production wells.
NeuRizer has a market cap of $157 million. Shares were trading at 17 cents as of 12:53 pm AEST.
There is plenty of raising activity underway this week. Gold producer Horizon Minerals (HRZ) announced it’ll open a $2 million share purchase plan next month, after raising $4 million through a placement. The money will fund exploration work.
Also announcing raising this week were Diatreme Resources (DRX), DiscovEx Resources (DCX), Nuheara (NUH), Orbital Corporation (OEC), Paincheck (PCK) and YPB Group (YPB).