Kuniko (ASX:KNI) share price jumps 500% on ASX debut

A five-bagger on open. What more could you ask for?

| More on:
A person with a round-mouthed expression clutches a device screen and looks shocked and surprised.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Kuniko Ltd (ASX: KNI) share price was a 5-bagger on open, surging to an intraday high of $1.05 within its first three minutes on the ASX.

About the Kuniko share price

Kuniko is a spin-off of Vulcan Energy Resources Ltd (ASX: VUL) and its non-core Norwegian battery metal assets.

The spin-off enables Vulcan to fully focus on the development of its core Zero Carbon Lithium project while Kuniko will focus on the development of copper, nickel and cobalt projects in Scandinavia.

Kuniko's initial public offering successfully raised ~7.8 million at an offer price of just 20 cents per share.

At the time of writing, the Kuniko share price is trading at 94 cents, or 370% higher than its offer price.

Kuniko's projects

Kuniko will be focused on exploration programs to determine the economic viability of its projects, with a strict mandate to maintain a net zero carbon footprint throughout exploration, development and production.

The focus will be on the company's 262km2 Nickel-Cobalt-Copper (Ni-Cu-Co) licence portfolio which includes:

  • South-west Norway tenements: Ni-Cu-Co projects in the historically important Feøy and Romsås mining districts located in south-western Norway
  • South-central Norway cobalt tenements: Copper-Cobalt-Gold project, part of the historically important Skuterud mining district of central-southern Norway, previously the largest cobalt mining area in the world
  • South-central Norway copper tenements: Undal Cobalt-Zinc-Copper project and Vangrøfta Copper-Cobalt-Gold projects located in the Trondheim region of central Norway

The company has budgeted $4.15 million worth of exploration activities for the first two financial years. This could mean a number of catalysts for the Kuniko share price as geophysics, sampling and drilling results are released.

What's the hype behind the Kuniko share price?

Kuniko was created by the same team as Vulcan Energy, an emerging ASX lithium producer whose share price surged from 60 cents to $14 in the past 12 months.

Moving forward, the company has a highly credible and experienced team to progress exploration. This includes its executive chairman, Gavin Rezos, who was the non-executive chairman of Vulcan Energy.

Kuniko's prospectus also highlights that "in recent years there has been an increasing demand for battery metals including copper, nickel and cobalt, specifically in the EU as a result of change in policy by EU governments seeking to dramatically reduce carbon emissions".

Motley Fool contributor Kerry Sun owns shares of Vulcan Energy Resources Limited. 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.

More on IPOs

Man with rocket wings which have flames coming out of them.

The newest ASX IPO stock just rocketed 50%

This IPO has certainly been a success on day one.

Read more »

IPO written in circles with a man holding a smartphone and a laptop open.

Could this rumoured ASX IPO become a billion-dollar takeover target?

There might be a second chance to invest in a similar company to the one set to depart the ASX…

Read more »

IPO written in white with increasing arrows and a man holding out his hand.

Reddit stock soars 48% on debut! Will the ASX IPO market heat up again?

It was a great first day for Reddit.

Read more »

An arrow going upwards with a road sign saying 'IPO ahead'.

Should you buy into an IPO or wait until shares start trading on the ASX?

IPOs can be exciting, but also dangerous for investors.

Read more »

A female miner wearing a high vis vest and hard hard smiles and holds a clipboard while inspecting a mine site with a colleague.

ASX IPO alert: Blockbuster copper listing coming soon

Here's what you need to know about this upcoming IPO.

Read more »

IPO spelt out on a laptop with a red and green bar chart underneath.

Fewer ASX IPOs in 2023, but here's how they've performed

We reveal the top 10 new listings by size and how their share prices have changed to date.

Read more »

IPO written in yellow and stuck in the air.
Materials Shares

Rich listers are buying into the IPO of ASX lithium explorer Kali Metals

There's a new lithium share in town. Here's what you need to know.

Read more »

IPO written in circles with a man holding a smartphone and a laptop open.
International Stock News

The highs and lows of the Instacart $11 billion IPO

Here is a closer look at the latest company to hit the Nasdaq exchange.

Read more »