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:
Aldoro Resources Limited (ASX: ARN)
Its principal activity is mining exploration.
Aldoro Resources is going to explore and develop the Ryans Find, Kalgarin, Cathedrals and Leinster Projects and other mineral opportunities. They comprise over 1100km2 of granted tenure and applications which are prospective for either, or both, nickel-cobalt mineralisation in weathered lithologies or nickel sulphide mineralisation.
It's looking to raise $4.5 million at $0.20 per share and start trading today.
AMD Resources Limited (ASX: ADM)
Its principal activity is mining exploration.
It wants to become a leading Papua New Guinea and Australia based mining company. A key focus is gold and other materials located at the projects in PNG, Queensland and the Northern Territory.
The company said it has already spent over $12 million on its project portfolio, building the material value of its assets.
It's looking to raise $20.3 million at $0.50 per share and start trading today.
Black Dragon Gold Corp. (ASX: BDG)
Its principal activity is mining and exploration.
Black Dragon Gold owns 100% of the Salave gold project in the Asturias region of Spain. According to the company, Salave is a technically robust project situated in a highly prospective region and recognised as one of the largest undeveloped gold projects in Europe.
It's looking to raise $6 million at $0.20 per share and start trading today.
Sultan Resources Ltd (ASX: SLZ)
Its principal activity is mineral exploration.
The company is going to acquire the East Tallering, Dalwallinu, Thaduna and Lake Grace projects. These projects combined are for land of approximately 946km2 to explore for gold and other minerals in WA. Most of them are near Perth.
Sultan Resources is looking to raise $5 million at $0.20 per share and start trading tomorrow.
Foolish takeaway
All four of the IPOs this week are mining exploration businesses. I wish them all success with their endeavours, however I'm not interested in investing in any of them. Mining exploration is far too speculative, uncertain and hard to appropriately analyse for me.
