How much were Fortescue shares when they first listed on the ASX?

How much were Fortescue Metals Group Limited (ASX: FMG) shares when they were first listed on the ASX? Good question.

Fortescue is now an entrenched iron ore mining giant and ASX 200 blue-chip share. So it's easy to forget it hasn't actually been on the ASX for that long, especially compared to some of its peers like BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO). 

So, Fortescue wasn't always Fortescue. Before current chair Andrew 'Twiggy' Forrest took hold of the company, it was known as Allied Mining and Processing.

Allied Mining and Processing was a fledgling gold miner at the time, but hadn't had too much success before Twiggy got involved. In fact, a report from The West Australian described Allied Mining and Processing as a "penny dreadful".

Forrest took charge of the company back in July 2003 and engineered its name change at the same time. He also turned its focus to the red, iron-filled dirt of the Pilbara region of Western Australia.

Fortescue follows the red brick road to fame and fortune

At the time of the 'new' Allied Mining and Processing's first appearance on the ASX under the Fortescue Metals name, it was priced at … just 2 cents a share. A few months before that, this was a one-cent company.

Of course, Fortescue's current share price of $21.26 (at the time of writing), as well as its all-time high of $26.58, make that initial share price look utterly ridiculous. The rise from 2 cents to today's price represents a gain of 106,000%.

No wonder Twiggy is now the country's second-wealthiest person, according to the Australian Financial Review (AFR)'s Rich List. On its most recent estimate, Forrest is now worth $27.25 billion, only behind Gina Rinehart on $31.06 billion.

Fortescue shares have given investors massive returns in recent years. The company is up 7% in 2022 so far, and up 300% over the past five years. That's on top of the monstrous dividends it has also been paying out in recent years. On the current Fortescue share price, this ASX 200 miner has a trailing dividend yield of 14.03%.