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Investment Solutions

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Investment Solutions

Features

IPO Bulletin: High-grade copper history draws big gains for Revolver Resources

Rene Anthony

Thursday, September 23, 2021

Thursday, September 23, 2021

With commodity prices seeing turbulence this week, and tech also seeing volatility, find out how each of this week IPOs performed in their debut week.

With commodity prices seeing turbulence this week, and tech also seeing volatility, find out how each of this week IPOs performed in their debut week.

A number of under-the-radar names hit the market over recent trading sessions, both home and abroad, but it was a junior copper explorer and a digital payments processor that took the honours this week.

New ASX listings

The timing couldn't have been worse for iron ore explorer Pearl Gull Iron (ASX: PLG), which made its ASX debut on Monday, the same day iron ore prices extended their recent plunge. For the first time in over a year, the commodity fell through the US$100 per tonne mark, and while it has since reclaimed that threshold, price action weighed on sentiment as the company hit the market to trade below listing price. After raising $4 million, the company is running diamond drilling at its Switch Pit prospect at Cockatoo Island, a long-established location for premium-grade iron ore.Next in line this week were Internet-of-Things (IoT) platform X2M Connect (ASX: X2M), which raised $8 million, and nickel explorer Widgie Nickel (ASX: WIN), which secured $24 million in IPO funding.

X2M Connect operates in the tech space, with more than 120,000 smart devices connected to its IoT platform, with distributed intelligence solutions generating real-time information and control to over 30 customers from around the world. Amid interest, a number of ASX-listed players have emerged in this space lately, and that was shown by a strong start to life as a public company, with shares up 40% at one stage, albeit then shedding most of those gains.

On the other hand, Widgie, with its project spun-off from Neometals (ASX: NMT), enjoyed a bright start to trading as well, up more than 20% this week. The company will commence its own maiden drilling campaign in the next month, south of Kalgoorlie, with recent drilling conducted by parent company Auric Mining (ASX: AWJ) returning thick massive nickel sulphide intersections at its Munda prospect.Rounding things out, it was a stellar debut for junior copper explorer Revolver Resources (ASX: RRR), up 20% on day one, and as much as 40% higher the following day. The company Dianne Copper Mine was once home to some of the highest-grade copper in the country, but when commodity prices floundered, the site was closed. Management of Revolver Resources hope modern exploration techniques will prove fruitful after raising $12.7 million in funds at $0.20 per share.

New US listings

Restaurant payments processing firm Toast (NYSE: TOST) kicked off the week with a performance to remember, climbing around 50%. The stock had been priced at US$40 per share as part of the IPO, with its value topping US$20 billion. Toast provides restaurants with point-of-sale hardware, team-management tools, and order-management software, serving around 48,000 restaurants.Customer support software firm Freshworks (NASDAQ: FRSH) completed its US$1 billion raise, and with interest in its larger rival Salesforce (NYSE: CRM) soaring in recent months, that proved to be a strong catalyst for the stock, gaining nearly one-third on debut.Online fashion brand retailer A.K.A Brands (NYSE: AKA) didn't share the same fortune as some of the other class of IPO debutants this week, down around 13% since listing day. That followed the company decision to already cut the size of its IPO amid wobbly interest.Elsewhere, there were bright debuts for background & identity verification tech company Sterling Check (NASDAQ: STER), up 17%, and ethically-sourced jewelry retailer Brilliant Earth Group (NASDAQ: BRLT), which soared 42.7%. In a similar fashion, premium food retailer Sovos Brands (NASDAQ: SOVO), blockchain tech firm Argo Blockchain (NASDAQ: ARBK) and international money transfer service Remitly Global (NASDAQ: RELY) each gained around 12%On the other hand, it was a slow start for healthcare invoicing and payments SaaS business EngageSmart (NYSE: ESMT),  down 9%, and dietary supplements business Thorne Healthtech (NASDAQ: THRN), down 24.5%.Canadian digital bank VersaBank (NASDAQ: VBNK) is expected to debut tonight as it completes a small dual-listing, alongside COVID home test manufacturer Cue Health (NASDAQ: HLTH), which has secured US$200 million.

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