Kalamazoo Resources (ASX:KZR) spin-out Kali Metals has increased the maximum subscription amount of its initial public offering (IPO) in light of a ‘strong level of interest’ from investors.
As part of its move to list on the ASX, Kali tapped the market for up to $15 million via the issue of 60 million shares at $0.25 per share through its IPO, which opened earlier this month.
Kali says this offer was oversubscribed multiple times over and closed within hours of opening, with ‘significant’ support coming in from ‘several high-profile individuals’ and institutional investors.
As such, the company has raised the maximum subscription amount — though it has not yet reported the new maximum figure — and brought forward the closing date of the Broker Firm, Institutional, and Chair’s List Offer components of the raise.
While these components of the IPO have now officially closed, the priority offer to eligible Kalamazoo shareholders remains open and is due to close on 4 December.
Belle Potter Securities and Canaccord Genuity are acting as joint lead managers to the IPO.
Kali Managing Director Graeme Sloan says the IPO has so far received strong support from ‘high-calibre’ investors.
“Some of these same investors have also indicated their interest in potentially exploring strategic opportunities with Kali as we move past the IPO process.”
“Some of these same investors have also indicated their interest in potentially exploring strategic opportunities with Kali as we move past the IPO process”
This comes following the appointment of Stuart Peterson as the company’s Technical Advisor – Geology, which Sloan says with further strengthen what is already a ‘formidable’ exploration team.
Following the increased IPO maximum, Kali now expects its shares to begin trading on the ASX on a normal settlement basis on 5 January 2024 rather than 22 December 2023, as previously stated.
Kali will be established from the spin-out of a portfolio of lithium assets and mineral rights in Western Australia, New South Wales, and Victoria owned by Kalamazoo Resources and Canadian gold miner Karora Resources (TSX:KRR).
Kalamazoo first flagged the spin-out and IPO back in May 2023.
Write to Joshua Smith at Mining.com.au
Images: Kali Metals