Capital Raises Weekly Wrap - 13/08/2021

Last week saw lithium companies take a front seat with (ASX:CXO), (ASX:GLN) and (ASX:EUR) combining to raise $147.5m to fund their next stages of development.

Action across the rest of the market included large raises in the financial sector by (ASX:WLE) and (ASX:GCI) and smaller raises in the technology and energy sector by (ASX:IKE) and (ASX:ROG) respectively.

Placement Overview

*Placements are limited to those which left a trading halt between 09/08 and 13/08.

Core Lithium Limited (ASX:CXO) raised $91m via a placement with the amount raised to be used together with the $34 million Ganfeng equity investment to fully fund Stage 1 project development of the Finniss Lithium Project, with (ASX:CXO) on track for first production in late 2022. The issue price of $0.31 represented a 13.9% discount to the last close price and a 1% premium on the 10 day VWAP.

European Lithium Limited (ASX:EUR) raised $6.5m via a placement. Funds raised will be used to fund a definitive feasibility study at the Wolfsberg Lithium Project, for general exploration purposes and working capital. The issue price of $0.0625. Investors will also be issued one listed option (ASX: EUROA) (exercise price $0.075, expiring 19 April 2024) for every 2 shares issued.

ikeGPS Group Limited (ASX/NZX:IKE) raised $18.3m via placement with an additional $3m to follow with a fully underwritten share purchase plan (SPP). The proceeds of the placement and the SPP will be used to support recent customer wins, a growing sales pipeline and providing capacity for potential acquisition opportunities. The issue price of $0.95 represented a 14.4% discount on the last closing price.

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 Placement Performance

Looking back 90 days to see how placements have performed post placement takes us back to the first week of April. Similar to the last week of March we see a quieter market with only six placements occurring, however unlike last week where post raise performance was strong most have struggled to maintain their share price post placement.

Top performing:

• Maggie Beer Holdings Ltd (ASX:MBH) peaked at a 27% increase from issue price 79 days post raise and is currently sitting at a 18% increase 90 days post raise.

Worst performing:

• Evolve Education Group Limited (ASX:EVO) and Openpay Group Ltd (ASX:OPY) both saw a 38% decrease from issue price 90 days post raise.

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