Upcoming IPOs this week: Nordic Nickel

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:

• Aurora Energy (ASX: 1AE)

  • Lithium and uranium

• Bellavista Resources (ASX: BVR)

  • Diversified base and battery metals

• Koba Resources (ASX: KOB)

  • Cobalt