Evolution Energy Minerals (ASX:EV1) share price rockets 250% after IPO

What a first day Evolution Energy Minerals shares are having…

A woman throws her hands in the air in celebration as confetti floats down around her, standing in front of a deep yellow wall.

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 Evolution Energy Minerals Ltd (ASX: EV1) share price has landed on the ASX boards today following the successful completion of its initial public offering (IPO).

And what a first day it has been!

At one stage today, the graphite explorer's shares were up as much as 250% to 70 cents.

The Evolution Energy Minerals share price has pulled back a touch since then but remains up 210% at 62.7 cents currently.

The Evolution Energy Minerals IPO

Evolution Energy Minerals shares commenced trading on the ASX this morning after completing an oversubscribed IPO that raised $22 million at 20 cents per share.

On completion of the IPO, the company had a market capitalisation of approximately $32 million. However, following today's gain by the Evolution Energy Minerals share price, its market capitalisation has ballooned to almost $100 million.

What are the funds for?

The release notes that proceeds from the IPO will allow the company to immediately progress a number of work streams. These are all aimed at moving the recently acquired Chilalo Graphite Project in Tanzania towards a construction decision as soon as possible.

These work streams include front-end engineering design, advancing studies on downstream processing, stakeholder engagement, updating the relocation action plan, continuing graphite product qualification and marketing, and the implementation of an ESG program.

Management commentary

Evolution's Executive Chairman, Trevor Benson, commented: "We are extremely pleased with the response from institutional and retail investors to our IPO which was significantly oversubscribed. Chilalo is a well-advanced graphite asset and having successfully completed the IPO, Evolution is strongly positioned to advance Chilalo towards development. A comprehensive work program is now under way, firmly focused on achieving this objective."

"The success of the IPO was only possible due to the support of our shareholders. We sincerely thank our shareholders and look forward to what shapes as an exciting time ahead," he concluded.

Motley Fool contributor James Mickleboro 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.

More on IPOs

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

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.
IPOs

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.
IPOs

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'.
IPOs

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.
IPOs

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.
IPOs

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 »