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Investment Solutions

Features

Investment Solutions

Features

IPO Watch: MetalsTech lithium spin-off and battery recycling firm set to tap into ESG theme

Rene Anthony

Saturday, November 27, 2021

Saturday, November 27, 2021

As markets brace for a volatile week of trading, a number of stocks are still pencilled in for a stock market debut, but how they are received remains to be seen.

As markets brace for a volatile week of trading, a number of stocks are still pencilled in for a stock market debut, but how they are received remains to be seen.

After last week IPO debutants fell short of expectations, attention will shift to a host of resources names, with the largest coming courtesy of lithium explorer Winsome Resources (ASX: WR1), which is raising $18 million. Winsome, which draws upon hydro-power and has been spun out of ASX-listed MetalsTech (ASX: MTC), owns three project areas in Canada, with drilling at its Cancet hard-rock lithium project recording 3.7% lithium oxide from surface down about 17 meters.Elsewhere, short-term rental accommodation platform Alloggio (ASX:ALO) will be hoping to avert souring sentiment in the travel sector when it lists today, with the company largely targeting domestic travel across Australia.Coming in under the radar is resource collection, recycling and packaging firm Close the Loop (ASX: CLG), which has developed a safe and innovative battery collection and recycling solution in Australia. Having raised $12 million, it will debut with a market cap of $66 million, with more than $70 million revenue to its name last financial year.

Upcoming IPOs

MarketCompanyFocusIPO sizeExpected debutASXAlloggio Group (ALO)Short-term rental accommodation platform$7.5mNov 29ASXAndean Mining (ADM)Copper and gold explorer$6mNov 29ASXParabellum Resources (PBL)Copper and gold explorer$5mNov 29ASXWinsome Resources (WR1)Lithium explorer$18mNov 30ASXBiome Australia (BIO)Marketer and distributor of nutraceuticals and probiotics$8mNov 30ASXCosmos Exploration (C1X)Gold, copper and nickel explorer$5mDec 1ASXClose the Loop (CLG)Resource collection, recycling and packaging firm$12mDec 2ASX8 Au (8AU)Gold, copper, nickel and PGE explorer$12mDec 3ASXOrange Minerals (OMX)Copper and gold explorer$7mDec 3USNuvectis Pharma (NVCT)Phase 1 biotech for precision therapies for cancerUS$30mTBC

*All dates are subject to change and should be treated as an indicative guide only

Future Listings

All the talk last week focused on upcoming buy-now pay-later firm Beforepay, which released its prospectus. The company, which is set to list on the ASX in mid-January, will raise $35 million via shares priced at $3.41 a piece. If successful, Beforepay will list at a market cap just shy of $160 million, with funds set to bolster its international loan book. To date, the firm has amassed 125,000 customers and lent more than $170 million, earning a fixed fee of 5% on borrowings.Meanwhile, health tech firm Careteq has started its IPO process, launching a $6 million raise and eying a valuation of nearly $25 million. Careteq focuses on patient-care technology used to monitor the activity and safety of the elderly and those with disabilities. During FY21, the company revenue surged to nearly $6 million, with its products sold through the likes of Harvey Norman and Amazon.As gold comes back into focus, Felix Gold is racing towards an ASX float. Hoping to raise $10 million in fresh funds, the Alaskan-focused gold explorer has consolidated 392km2 of tenements in a region known for affordable energy access, skilled labour, existing infrastructure and gold production dating back well into history. From overseas, it is largely a case of smaller companies putting forward their plans at this moment following the holiday break. Another crypto mining firm is on the way in Applied Blockchain, which is eyeing US$75 million, while ASX-listed clinical stage biopharmaceutical company Bionomics will head to the US if it can raise US$25 million for the development of its candidate products designed to assist those living with serious central nervous system disorders.

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