Capital Raising

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

Mon 23 Jan 23, 1:46pm (AEST)
Currency stock market screen
Source: iStock

Key Points

  • Non-junior companies that raised capital include Imdex and Nickel Mines
  • The average discount for new shares was 12.04%
  • Larger cap raises experienced strong buying activity after the trading halt was lifted

A summary of companies that initiated capital raisings last week.




Mkt cap

Raise amount

Raise price


19 Jan







19 Jan


Nickel Mines





18 Jan


Arovella Therapeutics





18 Jan


Black Cat Syndicate





18 Jan


Openn Negotiation





18 Jan


Cyclone Metals





18 Jan


Xanadu Mines





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.

IMD chart
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.

NIHC chart
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.

BC8 chart
Black Cat Syndicate daily chart (Source: TradingView)


Written By

Kerry Sun

Content Strategist

Kerry holds a Bachelor of Commerce from Monash University. He is an avid swing trader, focused on technical set ups and breakouts. Outside of writing and trading, Kerry is a big UFC fan, loves poker and training Muay Thai. Connect via LinkedIn or email.

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