The capital-raising circus has rolled through another busy fortnight, with gold companies chasing serious money, brokers collecting plum mandates and two small IPOs producing extraordinary rewards for the corporate hounds who got them away.
asserted
who → raise → them
At the top of the broking tree, Argonaut Securities continued its particularly productive run.
asserted
Securities → continue → run
The Perth broker joined Barrenjoey Markets on Wiluna Mining’s monster $180 million float before teaming up with Canaccord Genuity on Ballard Mining’s $45 million placement, leaving its fingerprints on $225 million of gold-sector fundraising.
asserted
broker → join → fundraising
CommSec appeared on both tickets.
asserted
CommSec → appear → tickets
Taylor Collison secured Maronan Metals’ $20 million mandate, while Euroz Hartleys joined Canaccord on Torque Metals’ $25 million placement.
asserted
Hartleys → secure → placement
Across the Pacific, Baird and Lake Street Capital Markets helped Amaero International raise US$20 million (A$28.7 million), collecting US$1.4 million in underwriting commissions.
asserted
International → help → commissions
Further down the food chain, Aesir Corporate, GBA Capital, Veritas Securities, Prenzler Group, Morgans and Ord Minnett joined the action.
asserted
Corporate → join → action
However, the smaller transactions produced some of the meatiest broker arithmetic, with cash-and-options packages approaching eye-watering percentages of the money raised.
asserted
packages → produce → money
The aftermarket told a different story by 10am Perth time on Friday.
asserted
aftermarket → tell → Friday
Just two of the ten stocks examined were trading above their issue prices, while eight were underwater, including one placement still awaiting shareholder approval.
asserted
eight → examine → approval
A few punters were celebrating spectacular gains.
asserted
punters → celebrate → gains
Most discovered that an IPO or discounted placement could become an even bigger bargain once trading began.
uncertain
trading → discover → ?
WILUNA MINING (ASX: WMC)
Raised: $180 million
Issue price: 65c
Friday morning price: 50.5c
Return against issue: −22.3%
Wiluna Mining supplied the heavyweight transaction, with Barrenjoey and Argonaut sharing joint lead-manager duties on the 7.1-million-ounce gold company’s $180 million return to the ASX.
CommSec joined as co-manager, giving the non-underwritten float a formidable broking line-up.
asserted
CommSec → raise → up
Wiluna’s return offered investors yet another crack at one of Western Australia’s better-known goldfields, with fresh capital providing financial muscle for its next chapter.
asserted
capital → offer → chapter
While the brokers had plenty to celebrate, Wiluna’s new shareholders were calling for the nurse.
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shareholders → have → nurse
The stock closed its first session at 56 cents, a bruising 13.8 per cent below its 65-cent IPO price, before sliding to 50.5 cents in Friday morning trading.
asserted
stock → close → trading
That left the company’s hard-bitten thrill seekers in intensive care, cradling a painful 22.3 per cent paper loss barely out of the starting blocks.
asserted
That → leave → blocks
Wiluna strikes again!
asserted
Wiluna → strike → ?
That’s an uncomfortable contrast against $8.5 million in budgeted joint lead-manager fees, including third-party advisers, and 5.24 million three-year broker options exercisable at 84.5 cents.
asserted
That → ’ → cents
The options may be well out of the money, but the cash-fee budget makes uncomfortably short reading alongside the much longer list of injured punters.
uncertain
budget → make → punters
BALLARD MINING (ASX: BM1)
Raised: $45 million
Issue price: 66c
Discount: 7.7%
Friday morning price: 60.5c
Return against issue: −8.3%
Argonaut backed up its Wiluna assignment by joining Canaccord as joint lead manager and bookrunner on Ballard Mining’s $45 million placement, with CommSec again co-managing.
asserted
CommSec → raise → managing
The trio placed 68.2 million shares at 66 cents, a 7.7 per cent discount to the previous close and a hefty 16.2 per cent haircut to the 10-day volume-weighted average price.
asserted
trio → place → price
The proceeds are slated to advance Ballard’s 1.84-million-ounce Mt Ida gold project in Western Australia, funding studies, early works and infrastructure planning.
asserted
proceeds → slat → studies
An accompanying share purchase plan (SPP) targeted another $5 million, with scope for $5 million in oversubscriptions.
asserted
plan → target → oversubscriptions
Ballard estimated its bank balance could reach a tidy $94.1 million if the targeted SPP proceeds jumped into the tin.
uncertain
proceeds → estimate → tin
But while the brokers filled the book, the aftermarket was less accommodating.
asserted
aftermarket → fill → book
By Friday morning, Ballard had slipped to 60.5 cents, leaving applicants with their noses 8.3 per cent below the waterline.
asserted
Ballard → slip → waterline
Argonaut and Canaccord no doubt celebrated their success.
asserted
Argonaut → celebrate → success
However, the market has yet to see the champagne corks popping.
asserted
corks → have → ?
AMAERO INTERNATIONAL (ASX: 3DA)
Raised: US$20 million (A$28.7M)
Offer price: US$4.25 per US share, equivalent to 15.22c per ASX CDI
Discount: 1.8%
Friday morning ASX price: 19c
Return against offer: +24.8%
Amaero International took its capital-raising ambitions to Wall Street, with Baird leading a US$20 million (A$28.7M) public offering and Lake Street joining as additional bookrunner.
And the American brokers were hardly working for loose change.
asserted
brokers → raise → change
Underwriting discounts and commissions totalled US$1.4 million, seven per cent of gross proceeds, or about A$2 million at the original exchange rate.
asserted
discounts → total → rate
The underwriters also secured a 30-day option to purchase another 705,882 offer shares, potentially adding another US$3 million (A$4.3 million) before expenses.
asserted
underwriters → secure → expenses
That’s an option to buy additional shares, not free broker oppies.
asserted
That → ’ → shares
Amaero issued 4.71 million US common shares at US$4.25 each, equivalent to 15.22 Australian cents per ASX CDI using a 40-to-one conversion.
asserted
Amaero → issue → conversion
Up to US$10 million is earmarked for manufacturing equipment, with the balance available for working capital and research.
asserted
balance → earmark → capital
Unlike Ballard and Wiluna, Amaero’s investors weren’t looking for something stronger than Nurofen or intensive care.
asserted
investors → look → Nurofen
The CDIs traded at 19 cents on Friday morning, putting subscribers 24.8 per cent ahead.
A healthy underwriting commission and a positive return for investors.
asserted
CDIs → trade → investors
Everyone gets a slice of cake.
asserted
Everyone → get → cake
Back home, Canaccord and Euroz joined forces on Torque Metals’ $25 million placement, with Morgans co-managing.
asserted
Morgans → join → placement
The trio placed shares at 19 cents, a 7.3 per cent discount, to fund Torque’s Ritz gold project southeast of Kalgoorlie.
asserted
trio → place → Kalgoorlie
…and 38 more, not listed.
The Aporia
