Lykos Metals (ASX:LYK) share price rockets 80% in first 2 days of trade

This high flying metals explorer has nearly doubled since its IPO…

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The Lykos Metals Limited (ASX: LYK) share price has had a remarkable debut to the ASX. Since listing, the battery and precious metals exploration company has skyrocketed in value.

In addition, the company’s oversubscribed initial public offering (IPO) was successfully fast-tracked by 3 weeks. In the process, Lykos raised $12 million to contribute to its endeavours.

Heading into afternoon trade, the company’s shares are being traded for 36 cents apiece, up 12.5%. For context, the S&P/ASX 200 Index (ASX: XJO) is 0.01% higher at 7,416.2 points.

What is happening with the Lykos share price?

The listing comes at an opportune time for Lykos. There is still plenty of excitement surrounding the battery technology and materials sector as forecasts indicate growing demand. In turn, the Lykos share price has been running red hot since listing.

Lykos owns 100% of the Sockovac project, Sinjakovo project, and the Cajnice project; located in the Republika Srpska, Bosnia, and Herzegovina respectively.

Additionally, these areas have a rich history of high-grade minerals discovery and extraction. Exciting investors, the projects are prospective for nickel, copper, cobalt, precious metals, lithium, and rare earth elements — all of which are common constituents of batteries and electric vehicles.

Capitalising on the growing trend, Lykos raised its maximum target of $12 million in its IPO. This involved the issuing of 60 million new shares at an IPO price of 20 cents a pop.

Simultaneously, the company issued 1 free option for every 2 shares through the listing. Each option has an exercise price of 30 cents per share and a two-year expiry. This places these options well in the money, with the Lykos Metals share price now trading around 36 cents.

Furthermore, the company listed with a total of 113.4 million shares on issue. At the current share price, this gives Lykos a market capitalisation of $40.8 million. In fact, the Lykos share price has skyrocketed 80% from its IPO price.

Management commentary

Following the successful ASX listing, Lykos Metals managing director Mladen Stevanovic said:

Listing on the ASX marks a significant milestone for Lykos Metals. I would like to thank all of our investors who recognise the significant potential for value creation at our three battery and precious metals projects in Bosnia-Herzegovina.

We are now funded to commence our initial two-year exploration campaign, starting with the Sockovac Project which is highly prospective for nickel.

Bosnia-Herzegovina is an outstanding mining and investment destination and I look forward to getting boots on the ground.

Moreover, the company is now carrying out an aggressive exploration program across the projects. The initial focus is on the high-grade nickel-focused Sockovac project.

Finally, a positive for the Lykos share price is its proximity to modern transport infrastructure. All three projects are near infrastructure that connects to Europe’s battery supply chain.

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Motley Fool contributor Mitchell Lawler 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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