Why the 29Metals (ASX: 29M) share price has surged 12% since its IPO

The copper and metals miner has been having a good run…

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It’s been an exciting time for fans of 29Metals – its share price has shot up 12% since its Initial Public Offering (IPO) nearly a fortnight ago.

29Metals shares are currently trading for $2.26, after selling for $2.00 apiece during the company’s IPO.

Earlier today, the 29Metals share price reached $2.37 – its highest point yet.

Let’s take a look at what’s been going on with 29Metals since it debuted on the ASX on 2 July.

Quick refresher

29Metals is a copper producer with interests in gold, zinc, silver, and lead.

The company owns the Golden Grove mine in Western Australia. Golden Grove produces high-grade copper, zinc, and precious metals.

29Metals also holds Queensland’s Capricorn Copper mine which produces high-grade copper and silver, among other ores. Finally, it has an exploration portfolio in Chile.  

Placing its share price at $2.00 apiece made 29Metals’ IPO the largest ASX mining debut in a decade.

A good run so far

Despite gaining 12% on its IPO price, 29Metals has yet to announce any price sensitive news to the market.

Still, it’s seemingly managed to capture the attention of market watchers.

29Metal’s IPO saw it raise around $527 million before going to market.

Additionally, offering its shares for $2.00 apiece saw 29Metals with an expected market capitalisation of around $960 million.

At its current share price, 29Metals’ market capitalisation is around $1.07 billion.

Since the company listed, the price of copper has been wavering in a relatively flat trend, so it’s not likely to be driving the 29 Metals share price higher.

29Metals share price snapshot

The 29Metals share price has had a dramatic journey already.

Its shares fell 1.4% over their first 3 sessions on market before gaining a whopping 12.9% over another 4 sessions for no apparent reason.

They’ve since seemingly stabilised, closing at $2.27 yesterday and opening at $2.29 today.  

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. 

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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