Ardea leads IPOs

NICKEL-cobalt player Ardea Resources was the best-performing initial public offering of the March quarter.
Ardea leads IPOs Ardea leads IPOs Ardea leads IPOs Ardea leads IPOs Ardea leads IPOs

Kristie Batten

Ardea shares actually closed at a 10% discount on its debut in early February, but as of March 31, were 160% higher than the A20c issue price.

Shares in the company rose as high as 92.5c in late February, and gained 12% on Friday to 75c.

It comes after the ASX queried the company for a 22% rise earlier in the week, with Ardea putting the interest down to the realisation that the company held one of the world’s largest cobalt resources at Kalgoorlie.

Across all sectors, miners made up 60% of the top 10 IPO performers for the quarter, according to OnMarket Bookbuilds.

Canadian lithium player MetalsTech was up 55% after debuting at a 35% premium.

Broken Hill Prospecting spin-off Cobalt Blue Holdings was up 25% at March 31, Matador Mining was up 10% and Marquee Resources was up by 7.5%.

Overall, mining listings were up by 15.7% year-to-date.

There were 10 mining IPOs in the first quarter, compared to 12 for all of 2016.

However, the raisings were mostly small and only accounted for 19% of total IPO funds raised on the ASX in the first quarter.

There has already been a mining listing this quarter, with TNG spin-off Todd River Resources listing in the first week of April.

Shares remain 1.5c above the 20c issue price.

The pipeline is still pretty full, with E2 Metals, Manuka Resources, Huntsman Resources, Raptor Resources and Nelson Resources among those trying to get a float off the ground.

Magmatic Resources recently withdrew its application, following Traprock Mining and Wilgena Resources, which also scrapped plans to list.