Capital Raises Weekly Wrap - 17/09/2021

The past week in capital raising has seen 20 companies from 7 different sectors raising to fund their next stages of growth. The real estate sector came alive seeing the second and third largest raises for the week from (ASX:HDN) and (ASX:HPI) respectively.

The materials sector saw 12 raises totalling just under $253m raised including two from ESG focused companies. (AX:VUL) raised $200m and (ASX:HZR) completed a placement of $7m to fund their respective ESG projects.

The other sectors raised at the smaller end of the market with the finance, industrials, energy, technology, and health sectors combining across six placements to bring in just under $65m.

Placement Overview

*Placements are limited to those which left a trading halt between 13/09 and 17/09.

Resolution Minerals Ltd (ASX:RML) raised $1.7m via placement with funds to be used for initial and follow-up drilling at the Benmara project and for trenching & regional exploration at the 64North Project. Those that participated in the placement will also receive options to acquire shares, on a 1 for 2 basis with an exercise price of $0.03 per share and expiring 2 years from the date of issue.

intelliHR Limited (ASX:IHR) raised $11.5m via placement at an offer price of $0.23 per share which represented a 20.7% discount to the last close price and a 17.2% discount to the 30 day VWAP. Funds raised will be applied to continued investment in; expanding intelliHR’s global integrations and referral partnership channels, accelerating growth in domestic and global customer business development, and building out enterprise customer platform capabilities, advanced AI analytics, eco-system engineering capacity.

Vulcan Energy Resources Limited (ASX:VUL) raised $200m via placement at an offer price of $13.50 from existing and new institutional investors, including ESG-focused institutions. Funds will be used for; targeted acquisition and refurbishment of exploration equipment, targeted acquisition and upgrade of existing brownfield energy and brine infrastructure, and expand project development.

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 early May 2021. This week saw all but two placements fail to maintain the issue price 90 days post the raise with the average percentage change from the issue price being a 21% decrease.

This poor performance was led by two iron ore explores (ASX:MGU) and (ASX:MGT) which initially experienced strong performance post placement but have been heavily affected by the drop in iron ore prices.

• Pendal Group Limited (ASX:PDL) peaked at a 31% increase from issue price 85 days post raise and fell back to an increase of 26% after 90 days.

• Magnetite Mines Limited (ASX:MGT) peaked at a 53% increase from issue price 36 days post raise and then experiencing a mammoth fall to see a decrease of 48% from the issue price post raise.

• Magnum Mining And Exploration Limited (ASX:MGU) peaked at a 27% increase from issue price 22 days post raise and then experiencing a mammoth fall to see a decrease of 47% from the issue price post raise.

• Challenger Exploration Limited (ASX:CEL) struggled to stay above water ending the 90 days post raise at the same price as the issue price.

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