- Legacy Minerals Holdings made a weak debut on the ASX on Monday.
- The stock gained 22.5% in opening deals, before closing 10% lower.
- The mining explorer raised AU$5.8 million in its IPO.
- The Aussie company issued 29 million shares at an offer price of 20 cents.
- The offer received strong support from institutional investment.
Legacy Minerals Holdings (ASX: LGM), a gold and copper-focused mining explorer, made a weak debut on the Australian Securities Exchange (ASX) on Monday, in otherwise positive broader market sentiment. The share commenced trading at 11:30 AM AEST after successfully completing its initial public offering (IPO). The mining company raised AU$5.8 million by issuing around 29 million shares in its IPO.
Shares of LGM gained 22.5% in the opening trade to AU$0.24.5 cents, against an issue price of AU$0.20 on the ASX. Post listing, the mining stock declined 10% to settle the day’s trade at AU$0.18.
On the volume front, one million shares worth AU$230.5K changed hands over the counter, while market capitalisation dropped to AU$920.8K.
The stock received a subdued response from investors despite broad-based buying across material space, which was among the best performing sectors on the ASX. Index heavyweights BHP Group (ASX:BHP), Fortescue Metals Group (ASX:FMG), Pilbara Minerals (ASX: PLS), Lynas Rare Earths (ASX: LYC) and Silver Lake Resources (ASX: SLR) were among top gainers.
Meanwhile, Australian benchmark, the ASX 200, closed 0.25% higher at 7,425.20, led by gains in material and energy stocks.
Legacy Minerals’ AU$5.8M IPO gets strong response from institutional investors
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Formed in 2017, the homegrown company is engaged in the business of acquisition, exploration and development of tenements in the prospective Lachlan Fold Belt in New South Wales. The miner’s IPO received a strong response from institutional investors, accounting for 23% of the offer’s bookbuild.
The company intends to use IPO proceeds for the drilling program across its more advanced
exploration projects, including high-grade Au and base metals at Harden and Bauloora. A part of the fund will also be utilised to develop further the Cobar, Fontenoy, and Rockley Projects to a drill-ready stage.
Commenting on the listing, Chris Byrne, CEO & Managing Director, said, “Legacy Minerals are thrilled to have successfully completed its IPO. It is a major step in the journey for the Company, our management team, and our shareholders alike. We look forward to the future and are focused on delivering value to shareholders as we continue exploration across our diverse and prospective portfolio of exploration assets.”
“We are now well funded and with our exciting portfolio, there are numerous opportunities for discovery and opportunities for value creation,” Byrne added.
Legacy Minerals is a growth-oriented company involved in the acquisition and exploration of gold, copper, and base metal projects. The Company has five tenements – the Cobar Project, Harden Project, Bauloora Project, Fontenoy Project and the Rockley Project. With rising gold and copper prices, the company is well positioned to take the advantage of favourable market conditions. However, one must do thorough research before making an investment decision.