Capital Raises Weekly Wrap - 22/10/2021

The past week in capital raising has seen 20 companies from 7 different sectors raising to fund their next stages of development with $389.5m being raised via placement across the market. The consumer sector came alive this week with 3 companies combining to raise $112.5m at an average discount of 6.8%.

The materials sector saw the most raises with 9 placements completed totalling just over $182m raised including one of the only stocks listed on the ASX with magnesium exposure (ASX:LMG).

(ASX:ZLD) raised US$3.5m at a 54% premium to the stock's last closing price from Quincy Street Capital LLC a US-based family office to fund its next stage of development in the US and Australia.

Placement Overview

*Placements are limited to those which left a trading halt between 18/10 and 22/10

Swoop Holdings Limited (ASX:SWP) raised $41m via a fully underwritten placement at an issue price of $1.850 which represented an 11.5% discount to the halt price. Proceeds of the capital raise will be used to fund the acquisition of Countrytell (announced on 6 October 2021) plus other identified future acquisitions across fixed wireless, voice, fibre infrastructure and resale providers, in addition to the costs of the offer and working capital.

Latrobe Magnesium Limited (ASX:LMG) raised $3m via placement with funds to be used to finish the design and engineering services being conducted by Mincore Pty Ltd, LMG’s EPCM contractor, for its initial magnesium plant in the Latrobe Valley. In addition, the placement will allow LMG to complete its early works program at Tramway Road and allow Mincore to prepare the major equipment packages for tender in the first quarter of 2022. Placement shares were issued at $0.025 per new share with a 1 for 2 attaching option exercisable at $0.04 with a 2 year expiry.

De Grey Mining Limited (ASX:DEG) raised $125m via placement at an issue price of $1.10 which represented a 9% discount to the last traded share price of $1.21 on 19 October 2021 and an 8% discount to the 11-day volume weighted average price since De Grey’s Scoping Study was released to ASX on 5 October 2021.

Proceeds from the placement will be applied to: - Completion of the Mallina Gold Project prefeasibility study for release H2 2022; - Resource extension drilling at Hemi and Regional deposits; - Resource definition drilling, particularly at Diucon and Eagle zone; - Exploration drilling across the Company’s 150km tenement package; - Operations support and pre-development capital expenditure items; and - Corporate costs and general working capital.

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 to the second week of June. This week saw (ASX:DOR) dwarf all other 90 day post placement performances with an increase of close to 800% 90 days post placement.

Top performing:

• Doriemus Plc (ASX:DOR) peaked at an 852% increase from issue price 89 days post raise and fell back to an increase of 784% after 90 days.

• Blueglass Limited (ASX:BLG) peaked at a 26% increase from issue price 61 days post raise and fell back to an increase of 2% after 90 days.

Worst performing:

• Mandrake Resources Limited (ASX:MAN) saw a 65% decrease from issue price 90 days post raise.

• Ora Banda Mining Limited (ASX:OBM) saw a 41% decrease from issue price 90 days post raise.

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