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.

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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.

Should you invest $1,000 in Nico Resources right now?

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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.

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