Capital Raisings Wrap: Five microcaps tap the market while one large cap rallies 15% intraday
Imdex fell as much as -7.9% the day it resumed trading but managed to finish the session up 6.1%.
Source: Shutterstock
Mentioned
KEY POINTS
- A quiet week for capital raisings with just $245.2m raised
- The average discount for new shares was 11.85%
- Imdex shares manage to surge 6.1% when it resumed trading – up from session lows of -7.9%
A summary of companies that initiated capital raisings last week.
Date | Ticker | Company | Mkt cap | Raise amount | Raise price | Discount |
|---|---|---|---|---|---|---|
24 Jan | IMDEX | $1bn | $224m | $2.20 | 10.8% | |
24 Jan | Gateway Mining | $15.8m | $2.5m | $0.062 | 11.4% | |
24 Jan | Athena Resources | $8.7 | $2.0m | $0.01 | 10% | |
24 Jan | The Market Herald | $101m | $15.5m | $0.34 | 15% | |
25 Jan | Native Mineral Resources | $10m | $400,000 | $0.09 | 7.2% | |
25 Jan | Cipherpoint | $5.2m | $750,000 | $0.005 | 16.7% |
Capital raisings of interest
It was a pretty quiet week for capital raisings, with just $245.2m raised or a measly $21.2m if you exclude Imdex.
Imdex: Massive post-raise reversal
Imdex shares experienced a massive intraday reversal after it resumed trading on Monday, 23 January. The stock fell as much as -7.9% to $2.24 in early trade before closing the session 6.1% higher at $2.58. That's a 15.2% rally from session lows!
Its worth noting that 3.67m shares traded hands that day or a 610% increase compared to 20-day average volume.
Interestingly, on Tuesday 24 January, the stock experienced a similar whipsaw session, down -6.2% in early trade but finishing down just -0.4%. The volume was also abnormally high at 4.17m shares.
Does this price action suggest a well-supported capital raising where investors are now bidding up the stock?
Source: TradingView
Gateway Mining: A closer look
Gateway Mining is a microcap gold explorer, operating the 1,000 km<sup>2</sup> Montague Gold Project in WA.
Montague currently has a Mineral Resource totalling 526,000 ounces of gold and the company believes this forms part of a "significant gold endowed system [with] large scale targets".
The $2.5m capital raising will go towards accelerating exploration at Montague, including a major project-wide structural and geochemical compilation, targeted studies and field work.
Interestingly, Gateway Directors committed a collective $210,260 in the raise, subject to shareholder approval.
