Upcoming IPOs this week: Nordic Nickel
Only one IPO this week plus a look at recent IPO performance.
Source: iStock
Mentioned
KEY POINTS
- Only 1 IPO scheduled for this week
- IPOs have underperformed in May
- Successful IPOs continue to be green metal explorers
Every Monday, Market Index reviews the upcoming IPOs for the week.
All times are quoted in Australian Eastern Standard Time. Listing dates are indicative and subject to change.
Wednesday
Nordic Nickel
Nickel, copper and cobalt explorer
Raising $12m at 25 cents
Market cap $24-29m
Lists at 11:30 am
Leader managers receive 4m options
Both of Nordic Nickel's (ASX: NNL) projects, Pulju and Maaninkijoki 3 (MJ3), are located in Northern Finland, within the highly prospective Central Lapland Greenstone Belt.
The belt hosts several Tier-1 deposits including:
Agnico-Eagle’s 7.4Moz Kittilӓ gold mine
Boliden’s 307Mt Kevitsa nickel-copper-gold open pit mine
Anglo American’s 44Mt Sakatti copper-nickel-PGE underground project
Source: Nordic Nickel prospectus
The Pulju Project
The Pulju Project area contains widespread nickel sulphide mineralisation that includes a number of high nickel tenor sulphide veins, according to historic drilling.
Nordic has commenced work on a maiden JORC Mineral Resource Estimate based on historic drilling and has an estimated exploration target of 150-180Mt of nickel at grades between 0.22-0.27%.
More drilling at depth is expected to test for the potential of a large scale, high grade discovery at depth.
Maaninkijoki 3
Nordic has an earn-in agreement for MJ3, for up to 75%.
The company plans for early-stage exploration activities such as surface geophysics to generate drill targets.
Recent IPO performance
There have been 11 IPOs in May and the average IPO rose just 0.36% on its first day, which is rather underwhelming compared to:
27.6% for IPOs in 2022 (January to April)
20.7% for IPOs in 2021
To be fair, it's been a turbulent month for equity markets, with the S&P/ASX 200 staging a -5.75% [albeit short-lived] decline between 5-12 May, but has since recovered somewhat.
The most successful IPOs in May continue to be green metal explorers such as:
Lithium and uranium
Bellavista Resources (ASX: BVR)
Diversified base and battery metals
Cobalt
