The Investing News Network looks at three upcoming initial public offerings on the ASX that resource investors should keep an eye out for this fall.
The Australia Securities Exchange (ASX), which has a total market capitalization of about AU$2 trillion, continues to attract the attention from resource investors around the world.
More than 2,200 companies are listed on the Sydney-based stock exchange, with nearly 900 included in the basic materials and energy sectors. Despite what many may think, Australian companies are not the only ones that join the exchange every year — more than 100 foreign companies are listed as well.
In 2018, the ASX was among the top five exchanges globally for the number of new listings — 132 companies were listed during the 12 month period, with the total capital raised in initial public offerings (IPOs) reaching AU$8.5 billion.
The top resource listings last year were Viva Energy (ASX:VEA), which was the largest IPO on the ASX with a capital raising of AU$2.65 billion; Coronado Global Resources (ASX:CRN), which is focused on metallurgical coal; Perth-based Jupiter Mines (ASX:JMS), which operates the Tshipi manganese mine; and Nickel Mines (ASX:NIC), which has interests in the Hengjaya and Ranger nickel projects.
Here, the Investing News Network looks at three upcoming initial public offering that resource investors should keep an eye out for this fall as announced by the ASX.
1. Nemex Resources
Proposed listing date: September 30, 2019
Nemex Resources was previously focused on exploration and development of iron ore and gold in Australia and West Africa, but has now turned its attention to gold and base metals exploration projects in Western Australia.
The company has signed an acquisition agreement for a right to purchase an 80 percent interest in the Leonora South East gold project, the Ballard gold project and the Pavarotti nickel sulfide project. It also has a conditional right to buy the Lake Roe North gold project.
Nemex is looking to raise up to AU$5 million by offering 25 million shares at a price of AU$0.20 per share. Investors interested in the company’s offer can apply for a minimum of 10,000 shares for a total of AU$2,000, and thereafter in multiples of 2,500 for a price of AU$500.
2. Tartana Resources
Proposed listing date: TBA
The company is also developing the Mount Hess copper-gold project and the Amber Creek molybdenum–tin–tungsten project in Queensland. It also has an interest in the Zeehan Zinc Slag project in Western Tasmania.
Tartana is offering between 20 to 30 million shares at a price of AU$0.20 each to raise a minimum of AU$4 million and a maximum of AU$6 million. Investors looking to jump into this opportunity can apply for a minimum of 10,000 shares for a total price of AU$2,000, and after that in multiples of 2,000 shares for AU$400.
3. Trigg Mining
Proposed listing date: September 27, 2019
Trigg Mining is focused on exploring for sulfate of potash from hypersaline brines in Western Australia. Sulfate of potash is essential for global food production and human nutrition.
The Perth-based company is currently developing the Laverton Links and Lake Thorssell projects, which include a JORC compliant exploration target.
Trigg Mining is looking to raise AU$4.5 million through the issuance of 22.5 million shares at AU$0.20 per share. Investors interested in this offer can apply for a minimum of 10,000 shares and 5,000 attaching new options for AU$2,000, and thereafter in multiples of 2,500 shares and 1,250 attaching new options for AU$500.
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Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.