As we ring in the new year, the initial public offering (IPO) market has welcomed its first listing with the mining and natural resources sector already looking to be off to a hot start.
The highly anticipated IPO of lithium junior Kali Metals (ASX:KM1) has not disappointed with its share price skyrocketing on debut.
Kalamazoo Resources (ASX:KZR) yesterday (8 January) completed the spin out of its Australian lithium projects via a demerger and concurrent IPO of Kali Metals.
This proved fruitful for investors as of 1pm AEDT yesterday Kali Metals’ share price soared 75% to $0.437, almost double the $0.25 offering price. It closed trade on Monday at $0.435 with a market capitalisation of $$62.70 million.
Kali is a lithium-focused explorer and is the largest among the other 5 resources floats, raising $15 million, following a ‘strong’ interest from shareholders and new investors.
Kali has been established from the spin out of Kalamazoo’s portfolio of Australian lithium assets in the Pilbara region of Western Australia and the Lachlan Fold Belt of northeast Victoria and southern New South Wales.
This includes Kalamazoo assigning its interests to Kali of the SQM earn-in agreement, which operates in respect of the DOM’s Hill and Marble Bar projects.
Kalamazoo’s lithium projects have been combined with the ‘highly prospective’ lithium mineral rights of TSX-listed Canadian gold miner Karora Resources (TSX:KRR) across an extensive range of projects located south of Kalgoorlie.
Mining listings dominate again
Interestingly, there is just a single company with an upcoming float that is not in the mining or natural resources sector, financial services firm The Australian Wealth Advisors Group (AWAG).
The Australian Wealth Advisors Group plans to raise $5 million and was expected to close the offer on 11 December 2023, however the actual date is now to be advised.
The amounts being raised in this year’s imminent listings range from $5 million to $15 million, with the largest being Kali Metals.
Infini Resources is poised to list on the ASX on 16 January under the ticker code I88, raising $5.5 million. Infini Resources is a uranium and lithium focused explorer.
Golden Globe Resources plans to list with the ticker code GGR raising $6 million when it seeks to float on the ASX in 10 days on 18 January.
Golden Globe is a dedicated gold explorer focused on several ‘compelling’ resource targets in Queensland and Western Australia. The company has acquired 4 projects, namely the Dooloo Creek and Alma projects in Queensland, the Crossway Project in Western Australia, and the Nrila Creek Project in New South Wales.
Fuse Minerals expects to IPO on 8 February with ticker code FSE, raising $10 million.
Fuse Minerals is a diversified explorer with 3 projects in Western Australia and Queensland that are considered prospective for precious, critical, and base metals. All 3 of its assets encompass a 2,024km-square area.
Far Northern Resources plans to raise $6 million under the ticker code FNR, yet its date for IPO listing is to be advised.
Far Northern is a Brisbane-based gold and base metal explorer and has 3 projects across the North Queensland and Northern Territory area.
Meanwhile, for the battery metals sector, there are 2 remaining floats for this upcoming quarter. Western Australia Energy Resources (WAER) still seeks to raise $5 million and while it had planned to list on the ASX last year, its listing date is still to be advised.
The company had initially planned to go public on 15 May last year, as reported.
WAER initial exploration focus is on nickel, but has been looking into the possibility of exploring other commodities. The company has one main asset in Western Australia, namely the Jimberlana Project which covers a 253km-square area, plus 7 tenement applications adding 687km-square in land tenure.
There are strong similarities coming to fruition between 2023 and 2024 in regard to the IPO market.
According to HLB Mann Judd Advisory and Accounting in its IPO Watch Australia Mid-Year Report for 2023, there were 6 IPOs in January 2023 — while there are 6 reported upcoming this quarter.
HLB Mann Judd said throughout 2023 the market experienced a ‘significant’ decline in new listings, with only 14 recorded as of 30 June 2023.
HLB reported at the time this was a significant drop compared to 59 new listings in the same period during 2022.
Write to Aaliyah Rogan at Mining.com.au
Images: Kalamazoo Resources & iStock
