GWR subsidiary Western Gold Resources IPO to hit ASX today: How was the investors' response?

Summary

  • Western Gold Resources is set to make a debut on the ASX today.
  • A subsidiary of GWR Group, the stock will commence trading at 11.00 AM AEST.
  • The company has raised AU$7 million by issuing 35 million shares at 20 cents apiece.

Gold exploration company Western Gold Resources, a wholly owned subsidiary of GWR Group, is set to make a debut on the Australian Securities Exchange (ASX) today under the ticker name “WGR”. The gold stock will commence trading at 11.00 AM AEST, the company said in an exchange filing.

The company was expected to list on the ASX on 19 July 2021, but due to undisclosed reason it was postponed.

The Australia-focused explorer had received an overwhelming response to its AU$7 million initial public offering (IPO). The owner of the Wiluna West Gold Project issued 35 million ordinary fully paid shares at an offer price of 20 cents apiece. GTT Ventures and Lazarus Corporate Finance acted as joint lead managers to the IPO.

The company, in its IPO prospectus, had proposed to raise a minimum of AU$5 million by issuing 25 million new shares and a maximum AU$7 million by offering 35 million shares.

Following the listing of shares on the ASX, the company wants to focus on the development of the Wiluna West Gold Project, an advanced exploration project with potential to move to gold production.

The gold miner intends to use IPO proceeds to increase its mineral resources by bringing the Wiluna project towards production.

Western Gold Resources IPO receives good response

Image source: optimarc, Shutterstock.com

The IPO of Western Gold Resources opened for subscription for retail investors between 18 May to 8 June. The shares were issued in a minimum lot size of 10,000 shares and thereafter in multiples of 1,000 shares. The IPO received an overwhelming response to the offer, and many investors might have missed out on share allotment in the IPO.

All eyes will be on today’s listing. Investors who missed the bus might be keenly watching the listing today as it opens opportunity to directly buy shares from the exchange. IPO investing is volatile, and it is always prudent to seek advice from a full-service broker or adviser.

Earlier this week, three companies, Openn Negotiation, Gefen International and BCAL Diagnostics commenced trading on the ASX.

Australian property technology firm Openn Negotiation (ASX: OPN) made a strong debut on the ASX. The company, which facilitates transparent property transactions, had successfully raised AU$9 million by issuing 45 million shares at an offer price of 20 cents apiece.

Israel-headquartered technology firm Gefen International (ASX: GFN) listed on a muted noted. The tech firm’s shares got listed on the ASX following the completion of an oversubscribed AU$25 million IPO.  The issue received strong response from institutional and retail investors as well as its existing shareholders including Regal Funds Management, Ellerston Capital and Perennial.

Breast cancer detection company BCAL Diagnostics (ASX: BDX) made a subdued debut on the ASX. The diagnostic company had successfully raised AU$10 million by issuing 40 million new shares at 25 cents per share, valuing the company at AU$51.7 million.

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