Capital Raises Weekly Wrap - 02/08/2021

This week saw the market continue to heat up with 24 raises completed the most that have occurred over a week stretch in the last month. The increase in placements however did not lead to an increase in the dollar value of funds raised, with no major players seeking to raise a large sum which occurred in the two previous weeks by (ASX:PBH) and (ASX:EVN).

(ASX:FZO) and (ASX:RXM) lead the way with funds raised combining to raise $121m of the $333m raised across the market. These two raises also illustrate the sectors which sought to raise this week. With five technology companies combining to raise $84m to fund their next stage of growth and 10 materials companies going out to the market to raise $163m to unlock their next stages of development.

Placement Overview

*Placements are limited to those which left a trading halt between 02/08 and 06/08.

QEM Limited (ASX:QEM) raised $2m via a placement with funds to be used for the construction of its 100% owned Julia Creek Vanadium-Oil Project in Queensland and further define the project’s potential. The issue price of $0.15 represented a 22.3% discount to the 15 day VWAP of $0.193 and a 14.3% discount to the last close of $0.175.

Family Zone Cyber Safety Limited (ASX:FZO) raised $71m via a placement, with an additional $75m to be raised via an institutional entitlement offer ($37.1m) and a retail entitlement offer ($38.2m) to fund the acquisition of Smoothwall. Smoothwall is a leading digital and safeguarding services provider in the UK, which will enable (ASX:FZO) to enter the European market. The issue price of $0.55 represented an 8.3% discount to the last closing price of $0.60.

Alligator Energy Limited (ASX:AGE) raised $11m via a placement with funds predominately being raised from institutional funds in Australia, Hong Kong and the United States. The funds will be used primarily to progress an extended work program at the Samphire Uranium Project, including the current year’s planned resource drilling program, ANSTO testing and finalisation of a Scoping Study 1H 2022. Funds will also be used to further explore and plan their additional uranium opportunities. The issue price of $0.027 represented a 25.5% discount to the 10 day VWAP and a 25% discount to the closing price on 28 July 2021.

Placement Sector Breakdown

For a more detailed look at how the ASX sectors are performing check out: https://www.freshequities.com/ASX/sectors 

90 Days Post Capital Raise Performance

Looking back at how some capital raises have performed 90 days post capital raises, it takes us back to the last week of March. The week was a quieter one with only seven placements being completed across the week. The raises that did occur have on average performed well post placement, with the average change from issue price hovering between 10% to 27% for the 90 days and only one placement ending the 90 days underwater from the issue price.

Top performing:

• Australian Strategic Materials Limited (ASX:ASM) peaked at a 86% increase from issue price 80 days post raise and is currently sitting at a 68% increase 90 days post raise.

• Boss Energy Limited (ASX:BOE) peaked at a 43% increase from issue price 25 days post raise and is currently sitting at an 18% increase post raise.

• Genex Power Limited (ASX:GNX) peaked at a 36% increase from issue price 54 days post raise and is currently sitting at a 33% increase 90 days post raise.

Worst performing:

• Creso Pharma Ltd (ASX:CPH) saw a 39% decrease from issue price 90 days post raise.

• Wiluna Mining Corporation Limited (ASX:WMC) saw a 3% increase from issue price 90 days post raise, however struggled to stay above water for the majority of the 90 days.

Check out our Past Capital Raises page for more information on past transactions.