The Vulcan Energy Resources Ltd (ASX: VUL) share price is on watch this morning after the company announced its spin-off's initial public offer (IPO) has been heavily oversubscribed.
The lithium producer's spin-off, Kuniko Limited, will be listed on the ASX under the ticker KNI.
It will take over Vulcan's non-core, battery metal projects. As a result, Kuniko will be a zero-carbon copper, nickel, and cobalt producer with assets in Scandinavia.
Right now, the Vulcan share price is $8.91.
Let's take a closer look at today's news from Vulcan.
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Interest in Kuniko booms
All eyes will be on the Vulcan share price this morning to see how the market reacts to news of Kuniko's popularity.
According to Vulcan, both offers within Kuniko's prospectus have been oversubscribed.
The first offer allowed interested parties to get their hands on one of 12.5 million shares in Kuniko for 20 cents apiece.
Vulcan shareholders also had the opportunity to grab approximately 26.93 million Kuniko shares at 20 cents apiece through a 1:4 pro rata priority offer.
The company first announced the spin-off in April. Then, the Vulcan share price dipped on the back of the news.
Kuniko's prospectus offers have raised $7.88 million for the company's activities. Kuniko expects to list on the ASX sometime around 23 August.
After listing, Kuniko will have around 59.4 million fully diluted shares outstanding and, according to Vulcan's latest announcement, more than 2000 shareholders. It expects to have a fully diluted market capitalisation of approximately $11.8 million.
At its current share price, Vulcan has a market capitalisation of around $969 million.
Kuniko's directors didn't include financial guidance in the company's prospectus. Its prospectus said its operations are uncertain and any guidance would be too broad to be useful.
Vulcan share price snapshot
The Vulcan's recent performance on the ASX has been superb.
Vulcan shares are currently trading for 222% more than they were at the start of 2021. They have also gained a whopping 1,682% since this time last year.
