How these IPOs fared 1 week later

The first week of a company being on the ASX boards can be very telling. The market doesn’t get any new information until the next quarterly or half-year result, so we can get a sense of the market sentiment from how the share does in its first week.

Of course, how the market treats a share doesn’t ultimately mean anything. But, it can be interesting nonetheless.

If you want to learn more about a share below, I suggest you dig into the prospectus.

Here are how the latest ASX Ltd (ASX: ASX) shares fared:

Caprice Resources Ltd (ASX: CRS)

Caprice Resources’ principal activity is mining and exploration.

It’s a newly formed company that has four exploration licences covering two projects in the Northern Territory and Western Australia. The projects are located in proven mineralised belts according to the company. Gold, silver, lead and copper are the targeted resources.

The company was looking to raise $4.5 million at $0.20 per share and then list last week. However, Caprice didn’t make it onto the boards sadly and there is no new expected listing date with the ASX.

Cowan Lithium Limited (ASX: COW)

Cowan Lithium’s principal activity is mineral exploration.

It’s also a fairly newly-formed business. Cowan acquired its projects following a demerger of assets by lithium producer Tawana Resources NL (ASX: TAW). Tawana holds a 15% interest in Cowan Lithium, and the companies have a strategic exploration relationship.

Cowan was looking at raise $8 million at $0.20 per share and list last week. Sadly, it appears Cowan also didn’t make it onto the boards. A new listing date is yet to be announced.

Golden State Mining Limited (ASX: GSM)

Golden State Mining’s principal activity is also mining exploration.

The company has three prospective projects in Western Australia. The Cue Project is located in a historic gold mining region and the Yule project is located in an ‘emerging’ gold and lithium area. The Four Mile Well Project is located in a region where other major gold deposits had been found.

The company was looking to raise $5.5 million at $0.20 per share and then list last week. To complete the set, Golden State Mining also didn’t end up listing on the expected date, and there’s no new expected listing date.

Foolish takeaway

It’s quite disappointing when all the expected listings don’t happen. I suppose that’s one of the aspects to mining exploration – there is a lot of uncertainty surrounding it.

Over the long-term you’d probably be much better off investing in shares with proven profit-building capabilities, like these top blue chips.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of ASX Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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