Gold explorers may have dominated the local IPO calendar this week, but it was a stellar showing from one iron ore hopeful that stoked the biggest returns among new listings. Meanwhile, China has cracked down on companies eyeing offshore IPOs, which could have ramifications for new and existing names targeting a US listing.
New ASX listings
As the largest IPO of the week, Lumos Diagnostics (ASX: LDX) drew the most publicity among this week’s debutants. However, after an initial pop on listing, shares in LDX have found themselves gravitating back under the offer price, with buying support drying up for the point-of-care diagnostics company that is working towards FDA clearance for test devices designed to detect microbial infections and also COVID.
There were subdued performances from a host of other new listings this week. Gold and base metals explorer OZZ Resources (ASX: OZZ) traded in the range of 10-20% lower than its IPO price for the majority of the week, while end-to-end transaction financing solution provider Butn (ASX: BTN) gained little momentum, struggling to advance past its listing price. It was a similar story for gold explorer Pacgold (ASX: PGO), which raised $6 million at $0.25 per share and traded in a narrow range below its IPO price.
Faring slightly better, copper and gold explorer Locksley Resources (ASX: LKY) made a positive start to life as a public company, gaining 10% on day one. The company’s prospects in the Lachlan Fold Belt region came out of a divestment from West Australian nickel producer Mincor Resources (ASX: MCR), which is the largest shareholder on Locksley’s register.
Junior gold exploration duo Monger Gold (ASX: MMG) and Askari Metals (ASX: AS2) both had an upbeat debut, with their low enterprise values drawing in new investors. The former managed to maintain the bulk of its gains, whereas the latter eased as the week progressed to slip towards its IPO price of $0.20 per share.
Amid a soaring iron ore price, and strong interest in base metals, Burley Minerals (ASX: BUR) was one of the standout names this week. On its debut, the explorer hit a peak of $0.41 per share, 105% above its IPO price. Those gains, however, dipped as the week went on. Burley’s Yerecoin Project consists of two exploration licences that are located in close proximity to Chalice Mining’s (ASX: CHN) Julimar Project.
Closing out the week were debuts from diversified engineering, project delivery and operations management group DRA Global (ASX: DRA), and integrated logistics provider Silk Logistics (ASX: SLH), which traded 25% above its listing price of $2.
Lithium and base metals explorer Charger Metals (ASX: CHR) also capped off the trading week following its oversubscribed IPO. The stock enjoyed a welcome reception from the market, advancing 7.5%.
New US listings
After last week’s bumper period for new listings, it was a much more quiet affair for new floats in the US over recent days, although reverberations were felt as China tightened regulatory measures to ensure it has more control over companies looking to list on markets overseas.
First cab off the ranks was Minim (NASDAQ: MINM), although the company completed what is referred to as an “uplisting” rather than an initial public offering. An uplisting refers to the process where a stock is effectively moved from Over-The-Counter (OTC) markets to a national exchange, in this instance, the Nasdaq. Nonetheless, the communications device company, which offers an AI-driven residential managed WiFi and IoT security platform, gained just 2% on its market debut, with advanced notice and anticipation of the uplisting likely dampening first-day sentiment.
In micro-cap territory, shares in Moving iMage Technologies (NYSE: MITQ) soared upon listing following a raise of just US$12.6 million. Shares were originally priced at US$3 each, however, the cinema equipment manufacturer finished day one at US$24 per share, up 700%.
Last but not least, SPACs from AltC Acquisition (NYSE: ALCC) and Agrico Acquisition (NASDAQ: RICOU) also hit the boards, although neither made any impression on the market.
Scheduled to list tonight are new listings from oncology biotech TransCode Therapeutics (NASDAQ: RNAZ), which is developing a candidate to treat metastatic cancer, and consumer lending provider Sentage Holdings (NASDAQ: SNTG). The latter may face some uncertainty following the regulatory crackdown on offshore IPOs by Chinese government officials, which has already led to the cancellation of one prospective float in LinkDoc Technology (NASDAQ: LDOC).
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