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

What a first day Evolution Energy Minerals shares are having…

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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.

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