Each week I like to look at the upcoming IPOs which are happening on the ASX. It gives me a chance to see if there are any future stars being listed and perhaps get in early on that success story.
Every single share that currently trades on the ASX was a newly-listed share at one point, they should not be avoided just because they are new.
A new float is usually when a private company is looking to sell a small or large portion of the business to new investors. The funds are typically needed for the growth of the business, such as buying property, funding product development or making an acquisition.
According to ASX Ltd (ASX: ASX) there are a few upcoming listings:
Constellation Resources Limited (ASX: CR1)
Its principal activity is mineral exploration.
The company holds the Orpheus Project, which comprises five tenements covering approximately 552km² in a prospective portion of the Fraser Range province of Western Australia. The region could have nickel, copper and gold after a discovery in 2012.
Constellation Resources is looking to raise $7 million at $0.20 per share and then start trading on 24 July 2018.
Tempus Resources Ltd (ASX: TMR)
Its principal activity is also mineral exploration.
The company has a 90% interest in a business which is the registered holder of the Montejinni Project in the Northern Territory and the Claypan Dam Project in South Australia. Its focus will be looking for copper but it will also look for other resources.
Tempus Resources is looking to raise $5 million and then start trading on 30 July 2018.
Foolish takeaway
I wish the shareholders, management and employees of both companies well but I'm not interested in buying shares of either company. Minerals exploration is at the speculative end of investment opportunities on the ASX. I'd much rather put my money towards businesses that have a high chance of success.
