Energy fans, rejoice. The ASX has welcomed a new oil and gas explorer today and its shares are roaring past its initial public offering (IPO) price.
After offering shares in the company for 20 cents under its prospectus, the Top End Energy Ltd (ASX: TEE) share price has hit the ground running.
The company's stock is currently swapping hands for 36.5 cents apiece – representing an 82.5% gain on its float.
However, that's far from the highest the Top End Energy share price has been today. In fact, its first open saw it trading at 40 cents.
Additionally, at its current record high, it had surged to 41 cents. That's right, at one point this afternoon the ASX newbie was boasting a 105% gain.
So, what's got the market so excited about the energy commodity explorer? Let's take a look.
ASX energy newbie's shares float at double their IPO price
Top End Energy hit the ASX at 1pm on Monday at double its IPO offer price. The company raised $6.4 million in its IPO by issuing 32 million shares for 20 cents apiece.
Top End Energy is focused on its projects in Queensland and the Northern Territory.
It holds a hydrocarbon permit for Queensland's ATP 1069, named the Tri-Star Project.
It's also progressing permits for a 50% interest in 30 oil and gas permit applications – dubbed the TG Project – in the Northern Territory, covering more than 160,000 square kilometres.
Top End Energy acquired the TG Project from McKam, a private company that has been identifying, exploring, and developing resources for more than 30 years.
The project will be in joint venture with McKam. Additionally, McKam holds a 22.2% stake in Top End Energy.
The company intends to explore for gas and oil, as well as other marketable products such as helium and hydrogen. Though, its major goal is to reach net-zero Scope 1 and 2 emissions.
To get there, it plans to explore renewable energy, carbon abatement and sequestration projects, and, where necessary, will purchase carbon credits.
Additionally, it will look into developing complimentary renewable energy revenue streams in the vicinity of its core assets. These could include wind, solar, biomass, and biogas.
It expects to factor in costs of offsetting emissions in future exploration and development budgets.
Assuming its stock floated on the ASX at its IPO price, the company expected a fully-diluted market capitalisation of approximately $24 million with around 119.9 million shares outstanding.
At its current share price, the company has a fully-diluted market capitalisation of around $43 million.
