Upcoming IPOs: 4 stocks are set to list on the ASX this month

Mon 01 Jul 24, 4:19pm (AEST)
IPO 4 - wooden blocks on documents spelling out IPO
Source: iStock

Key Points

  • 4 companies are currently scheduled to list this month
  • Year-to-date, 14 companies have successfully listed on the ASX
  • The IPOs have averaged a day one return of 31% and currently up an average 18.9% since listing

Axel Ree (ASX: AXL)

Listing date and time: 9 July 2024

At a glance: Axel Ree is a rare earth and critical minerals explorer, with projects located in vastly underexplored regions in Brazil.

2024-07-01 14 58 06-Brazil-Projects-Map-HiRes-2048x2048.jpg (2048×2048)
Source: Axel Ree

Key details:

  • Sector: Materials

  • Capital to be raised: $10-15 million

  • Issue price: 20 cents

  • Offer underwritten: No

  • Indicative market cap: $31-36 million

  • Top holders: Pat Volpe & Associates will own 35-39% on completion of the offer. Axel is acquiring an interest in projects that are controlled by Mr Pat Volpe

  • Lead manager: Bell Potter (will receive 5 million options with an exercise price of 37 cents)

  • Prospectus: Link

What makes this IPO interesting: Recent rare earth-related explorers have shown impressive performances on their first day of trading. Notable examples include Brazilian Rare Earths, which rose from its $1.47 IPO price to $1.60, and Resouro Strategic Metals, climbing from a 50 cent IPO to 67 cents. Axel's flagship Caladáo Project has revealed an extensive 25km strike of mineralised rare earths, open in all directions. Additionally, the company is developing the early-stage Caldas Project, where recent soil and rock chip samples indicate rare earth potential. Post-listing, Axel plans to focus its exploration efforts on drilling the Caladáo prospects, aiming to define a maiden JORC mineral resource.

Ordell Minerals (ASX: ORD)

Listing date and time: 16 July

At a glance: Ordell plans to systematically explore three projects prospective for lithium and gold. It's flagship Barimaia Project (80% interest) is located next door to Ramelius Resources' Mt Magnetic.

Source: Ordell Minerals

Key details:

  • Sector: Materials

  • Capital to be raised: $5-6 million

  • Issue price: 20 cents

  • Offer underwritten: No

  • Indicative market cap: $9-10 million

  • Top holders: Michael Fowler, Managing Director of Genesis Minerals will own 9% of shares outstanding upon the completion of the offer. Genesis Minerals will also own 9%.

  • Lead manager: Argonaut Securities, they own 1.1 million shares as at the date of the prospectus. Also set to receive 2.0 million options with an exercise price of 25 cents

  • Prospectus: Link

What makes this IPO interesting: Ordell's listing comes at an opportune time, amid a bullish backdrop for gold. The company's project strategically neighbors Ramelius Resources, which recently acquired an 8.9% stake in Spartan Resources. This move by Ramelius appears logical, given its projected decline in gold production from 239,000 ounces in FY25 to 115,000 ounces by FY29. Eyeing a nearby exploration success story like Spartan aligns with Ramelius's likely need to replenish its reserves.

Alcoa (ASX: AAI)

Listing date and time: 24 July

Alumina Out, Alcoa In: Alcoa is set to acquire Alumina in an all-scrip deal comprised of 0.02854 shares of Alcoa for each Alumina share. This was at a 13.1% premium to Alumina's close as of 23 February 2024. Alcoa CDIs will trade on the ASX on a 1:1 basis with their US counterparts.

shutterstock 2190071129

At a glance: Alcoa is a global leader in the aluminium industry, operating across the entire upstream value chain. The company mines bauxite, refines alumina, and smelts and casts aluminium. With assets in 27 locations across nine countries on six continents, Alcoa maintains a significant global presence in bauxite, alumina, and aluminium production.

Bhagwan Marine (ASX: BWN)

Listing date and time: 30 July

At a glance: Bhagwan Marine is a leading marine solutions provider, operating in the oil and gas, civil construction, resources, marine logistics and defence industries.

Source: Bhagwan Marine

Key details:

The prospectus is not public yet. Most of the detail below has come from coverage from the AFR and The Western Australian

  • Sector: Industrials

  • Capital to be raised: $80 million

  • Issue price: 63 cents

  • Offer underwritten: TBD

  • Indicative market cap: TBD

  • Management ownership: TBD, founders Loui and Kerren Kannikoski are said to sell down a portion of their 70% shareholding

  • Lead manager: Euroz Hartleys

  • Prospectus: TBD

What makes this IPO interesting: Bhagwan Marine's valuation appears to have a solid floor, following MMA Offshore's bid from Cyan Renewables at $2.60 per share. The bid was later increased to $2.70 following MMA's upgraded FY24 earnings outlook due to favorable market conditions. This deal values MMA at approximately 7.7 times FY24 EBITDA, with MMA shares up 127% over the past twelve months amid strong demand from oil and gas markets. Interestingly, Bhagwan plans to allocate most of its IPO proceeds towards repairing its balance sheet. The company currently carries $44.5 million in bank loans, $24.6 million in shareholder loans, and $4.4 million in other payables. From an earnings perspective, Bhagwan is projecting significant growth, with net profit expected to rise from $3.7 million in 2022 to $10.4 million in 2023.

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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