Capital raisings wrap: 2 stock standouts as 7 companies tap the market

A summary of companies that initiated capital raisings last week.

Capital raisings of interest 

IMDEX: Acquisition inspires massive intraday reversal

The proceeds of IMDEX’s capital raising of $224 million, more than 20% of the firm’s total market cap, will be used to fund its acquisition of mining tech company Devico, the world’s largest supplier of directional drilling technologies and the second-largest supplier of sensor technologies.

The stock has staged a rather quick turnaround from a -4.8% open and a session low of -9.3%. As at 1:45 pm AEDT, it's trading around 1.0% higher.

IMDEX intraday chart (Source: Market Index)

Nickel Mines: Another post-raise runner

The transaction by Nickel Mines has several moving pieces. Approximately 40% of the raise will come from an institutional placement and the remaining 60% from one of the company’s largest shareholders, Newstride. 

A majority of the proceeds will be used to acquire a 10% interest in two producing nickel assets – the high-pressure acid leach project NHC and Oracle Nickel – both of which are located in Indonesia’s Morowali Industrial Park. NHC has a nameplate capacity of 60,000tpa nickel and 5,000tpa for cobalt.

The stock closed -6.7% when it resumed trading last Thursday, 19 January. However, it's up almost 7% in the last two trading sessions and close to reclaiming its post raise decline.

Nickel Mines daily chart (Source: TradingView)

Black Cat Syndicate: Rally into cap raise

Black Cat shares rallied 18.4% on Monday 16 January, after an updated JORC announcement classified its Coyote Gold Operation as one of Australia’s highest grade deposits with 356,000 ounces at 14.6g/t.

Management seized this opportunity to initiate a capital raising, which received a ‘significant cornerstone investment from Collins St Value Fund’ — a long only value investor.

Black Cat Syndicate daily chart (Source: TradingView)