Capital raisings wrap: 2 stock standouts as 7 companies tap the market
IMDEX and Nickel Mines experienced a V-shaped bounce after their shares resumed trading.
Source: iStock
Mentioned
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.
Date | Ticker | Company | Mkt cap | Raise amount | Raise price | Discount |
|---|---|---|---|---|---|---|
19 Jan | IMDEX | $980m | $224m | $2.20 | 10.8% | |
19 Jan | Nickel Mines | $3.0bn | US$471m | $1.02 | 8.9% | |
18 Jan | Arovella Therapeutics | $16.8m | $1.65m | $0.02 | 9.3% | |
18 Jan | Black Cat Syndicate | $89.2m | $17m | $0.40 | 11.1% | |
18 Jan | Openn Negotiation | $11.9m | $3.65m | $0.068 | 20.9% | |
18 Jan | Cyclone Metals | $18.4m | $1.35m | $0.0025 | 16.7% | |
18 Jan | Xanadu Mines | $44.6m | $1.1m | $0.027 | 6.9% |
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)
