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Capital Raising
Capital Raisings Wrap: 11 companies raised funds last week
By
Kerry Sun
Mon 19 Dec 22, 11:58am (AEDT)
Source: iStock
Stocks in article
Key Points
- Non-junior companies that raised capital include Mincor and Genmin
- The average discount for new shares was 16.4%
- The stocks closed an average -5.3% lower the day they resumed trading
A summary of companies that initiated capital raisings last week.
Date | Ticker | Company | Market cap pre-raise | Raise price | Discount | Post raise performance* |
|---|---|---|---|---|---|---|
16 Dec | Intra Energy Corp | $3.6m | Pending | Pending | Pending | |
15 Dec | Caprice Resources | $4.9m | $0.05 | 16.7% | $0.07 (+16.7%) | |
15 Dec | Strike Resources | $24.8m | $0.08 | 13.0% | $0.084 (-8.7%) | |
14 Dec | Flynn Gold | $13.9m | $0.10 | 31.0% | $0.115 (-20.7%) | |
14 Dec | Terrain Minerals | $6.2m | $0.006 | 25% | $0.007 (-12.5%) | |
13 Dec | Investigator Resources | $66.9m | $0.042 | 16% | $0.047 (-7.8%) | |
13 Dec | Genmin | $102.7m | $0.20 | 20% | $0.22 (-12.0%) | |
13 Dec | Genesis Minerals | $490.0m | $1.20 | 0.4% premium | $1.345 (+12.6%) | |
12 Dec | Lefroy Exploration | $40.9m | $0.24 | 14.3% | $0.25 (-10.7%) | |
12 Dec | Mincor Resources | $775.8m | $1.39 | 12.3% | $1.48 (-4.4%) |
Post raise performance refers to the stock's performance the day it resumed trading
Capital raisings of interest
Caprice Resources (ASX: CRS) - Rare earths, ~$40m mktcap
Caprice shares rallied 16.7% the day it resumed trading. In parallel with the raise, the company acquired the 380km 2 Mukinbudin Rare Earth Element Project – a relatively early-stage project that contains several known pegmatites. The company said this move was a 'natural addition to diversify the current base metals and gold portfolio'. Initial work will involve a systematic mapping and sampling program to build up a geochemical database.
Caprice 3-month chart (Source: TradingView)
Genmin (ASX: GMD) - Gold, ~$500m mktcap
Genmin shares briefly rallied 28.5% to $1.54 when it resumed trading but finished the session up 15.5%. Two days later, the shares would briefly slump to the raise price of $1.20. The mid-tier gold miner is set to merge with the embattled St Barbara (ASX: SBM) to form a 'leading Australian gold house'. Post-merger, St Barbara shareholders will own 38% of the new entity, Genesis 41% and proceeds from the recent capital raising will account for the remaining 22%. The company expects the merger to eliminate up to $400m in capex and unlocks ~$200m in unique synergies.
Genmin 3-month chart (Source: TradingView)
Mincor (ASX: MCR) - Nickel, ~$700m mktcap
Mincor raised $55m to accelerate the development of its Golden Mine and drilling activity at the Cassini prospect.
Broker notes: Macquarie retained an OUTPERFORM rating and a $1.80 target price for Mincor. The capital raise was viewed as a catalyst for more balance sheet flexibility as the company progresses the two key projects above.
Mincor 3-month
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