Bloom or doom? Here’s how ASX debutants Resource Base, Aerison, and others performed last week

Summary

  • As many as five companies made ASX debut during the week ended July 16.
  • Balkan Mining and Industrial Minerals witnessed strong listing on ASX.
  • Mineral explorer Resource Base delivered negative returns to IPO listing.

The Australian share market clocked 1% gain last week, the highest in the last six weeks, as strong economic data and merger news helped investors shrug off concerns over the spread of the Delta coronavirus variant in the country.  The US Federal Reserve’s indication to continue its highly accommodative stance and keep interest rate at record low also helped calm investors’ jitters.

On the initial public offering (IPO) front, five companies - Aerison, Balkan Mining, Industrial Minerals, Mt Monger Resource and Resource Base – made their debut on the Australian Securities Exchange (ASX) last week.

Here’s how newly listed companies performed on the ASX:

Aerison Group | Listing: July 12| Return over offer price: 30%

Engineering services provider Aerison Group (ASX: AE1) had a muted debut on the ASX on July 12, closing marginally higher against its IPO price of 20 Australian cents. The stock has delivered a decent return of 30% in the first five days of trade last week. The copper explorer’s shares closed at 26 cents on Friday, against an offer price of 20 cents.

The company had received overwhelming response for its AU$13.5 million IPO. The company issued 37.5 million new shares and 30 million sale shares by the shareholders at an issue price of 20 cents each. The listing saw founders Giuseppe Leone and Daniel Hibbs together divesting 20 million fully paid ordinary shares of the company.

The company intends to use capital proceeds as working capital to fund future growth opportunities.

Founded in 1988, Aerison employs 545 people and delivers projects across mining and minerals, oil and gas, non-process infrastructure sectors in Australia.

Resource Base | Listing: July 12| Return over offer price: -10%

Mineral explorer Resource Base (ASX: RBX) was another company that made a weak debut on the ASX on July 12. In the first week of its trade, the stock delivered a negative return of 10%. The copper explorer’s shares closed at 18 cents on Friday, as compared to the offer price of 20 cents.

The company, which owns the Black Range project in Victoria, joined the ASX after successfully raising AU$5.5 million through public offering. The company intends to use the capital raised to fund the acquisition and exploration of the Black Range copper-gold project, which is located along the Stavely corridor.

Balkan Mining and Minerals | Listing: July 14 | Return over offer price: 87.5%

Mineral exploration company Balkan Mining and Minerals (ASX: BMM) made a strong debut on the ASX on July 14. The stock has delivered a strong return of 87.5% in the last three trading sessions. The shares were spotted at 37.5 cents on Friday, against an offer price of 20 cents.

The company, which explores and develops lithium-borate projects, had successfully raised AU$6.5 million by issuing 32.5 million shares. The miner will use the IPO funds for exploring its Serbian assets with a focus on the Rekovac project.

Industrial Minerals   | Listing: July 13| Return over offer price: 62.5%

Australian-based miner Industrial Minerals (ASX: IND) commenced trading on the domestic stock market exchange on 13 July 2021. The company’s shares delivered a solid return of 62.5% in the first four days of trade last week. The miner’s share price closed at 32.5 cents on Friday, against an offer price of 20 cents.

The miner is backed by Australian billionaire and property investor Lang Walker, who owns a 9% stake in the firm. Also, Regal Funds Management holds a 30% shareholding in the company.

Mt Monger Resource | Listing: July 15| Return over offer price: 2.5%

Gold miner Mt Monger Resources (ASX: MTM) commenced trading on the ASX on 15 July 2021. The mineral exploration and development company had received an overwhelming response to its AU$5 million IPO issued at 20 cents per share.

The stock delivered a flat return of 2.5% in the first two sessions of trade last week. The shares closed at 20.5 cents on Friday against an offer price of 20 cents.

The mineral exploration company, focused on gold and other precious metals discoveries in Western Australia, will use its IPO funds to systematically explore across its projects, including the Mt Monger Gold Project. The fund will also be utilised for the East Laverton Gold and Rare Earths Project.

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