The Nico Resources (ASX:NC1) share price just surged 93% on second day of trade

The nickel and cobalt explorer has launched onto the ASX with gusto.

| More on:
A group of people in suits and hard hats celebrate the rising share price with champagne.

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

Key points

  • The Nico Resources share price debuted on the ASX on Wednesday after raising $12 million in its IPO
  • The ASX newbie's stock is currently trading 55% higher than yesterday's close at 56 cents
  • That's 195% higher than its offer price of 20 cents

The Nico Resources Ltd (ASX: NC1) share price is continuing its breathtaking rally in its second day of trading on the ASX.

The nickel and cobalt explorer floated at midday yesterday (AEDT) after an initial public offering (IPO) that saw its shares sold for 20 cents apiece.

At the time of writing, the Nico Resources share price is 59 cents, 63.89% higher than its previous close and 195% higher than its offer price.

However, earlier today it was trading at a new record high of 69.5 cents – representing a 93% gain on its previous close and a 247.5% gain on its offer price.

Let's take a closer look at how the company has performed on the ASX so far.

Nico Resources share price continues its upwards momentum

The Nico Resources share price is taking off once more as the market continues to warmly welcome its newest face.

Since its ASX debut, 16 million of the company's shares have swapped hands. For context, Nico Resources expected to list with around 91 million outstanding shares.

It seems many in the market are as optimistic about Nico Resources as its management. Talking on the company's float, its CEO and managing director Rod Corps commented:

Nico Resources is well placed to be able to partner with some of the largest end users in the world to create a long-term supply option for the rapidly growing EV sector…

The board believes that with the increasing demand for both nickel and cobalt associated with the battery minerals sector requires a substantial increase in environmentally and ethically sustainable nickel production.

The company's Wilgellina Project, located within its Central Musgrave Project, is a large undeveloped nickel deposit.

As of its first close, Nico Resources had a market capitalisation of around $31.4 million, according to CommSec.

Assuming it does indeed have 91 million shares on offer, the current Nico Resources share price would leave the company with a valuation of around $53 million.

Motley Fool contributor Brooke Cooper 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 Resources Shares

Miner looking at a tablet.
Resources Shares

Where will BHP shares be in 3 years?

The miner has some big plans in the works. Here's my view on what could happen with BHP shares.

Read more »

Three happy construction workers on an infrastructure site have a chat.
Resources Shares

3 ASX mining sector shares to buy if you're afraid of commodity price impacts

These ASX mining shares are in the 'pick-and-shovel' business.

Read more »

two men in hard hats and high visibility jackets look together at a laptop screen that one of the men in holding at a mine site.
Resources Shares

2 'highly attractive' sold-off ASX mining shares to buy

These stocks could be worth digging into, according to one fund manager.

Read more »

happy mining worker fortescue share price
Share Gainers

Move over Lynas! How this ASX rare earths small-cap surged 106% in just 6 months

This ASX rare earths stock has more than doubled in less than half a year. But how?

Read more »

Two excited mining workers in yellow high vis vests and hardhats shake hands to congratulate each other on a mineral discovery
Resources Shares

BHP share price marching higher amid legal cost sharing agreement with Vale

BHP and Vale face class actions in multiple nations relating to the 2015 Fundao Dam collapse in Brazil.

Read more »

Miner and company person analysing results of a mining company.
Resources Shares

Will the BHP share price keep falling?

Can things get even worse for the ‘Big Australian’?

Read more »

A young man wearing a backpack in a city street crosses his fingers and hopes for the best.
Resources Shares

Here 3 ASX lithium shares to watch for FY25

Brokers see light in the ASX lithium sector.

Read more »

A female employee in a hard hat and overalls with high visibility stripes sits at the wheel of a large mining vehicle with mining equipment in the background.
Resources Shares

I'd buy Fortescue shares today to generate $2,000 of monthly passive income

After the past five months’ sell-down, I think Fortescue shares provide a strong long-term passive income opportunity.

Read more »