It's been a fairly pleasant day for ASX so far this Wednesday. At the time of writing, the All Ordinaries Index (ASX: XAO) has put on a healthy 0.42%. Thus, it's probably a good day for an ASX initial public offering (IPO). That's what has just happened with the Southern Palladium Limited (ASX: SPD) share price.
Southern Palladium is the newest company to join the ASX. Its shares debuted on the ASX boards this morning. So let's check out how this IPO went.
Southern Palladium, as the name implies, is a hopeful in the palladium space. Palladium is a rare precious metal that is primarily used in vehicle parts such as catalytic converters. According to the company, it is "in the process of acquiring a 70% interest in the Bengwenyama palladium/rhodium dominated PGM project located on the Eastern limb of the Bushveld, South Africa".
According to the company's first ASX notice as a public business, Southern Palladium's $19 million IPO funding round was "oversubscribed" at a price of 50 cents a share. Its previous financial backers included Australian fund manager Regal, as well as global fund managers Sprott Holdings and Lowell Capital.
Well, it's been a relatively successful IPO for Southern Palladium. The investors who bought shares last month at 50 cents each would be pleased anyway. Over the company's first day of trading thus far, Southern Palladium shares have traded between 58.5 cents and 65 cents each. They are currently going for 65 cents at the time of writing, up 30% from the IPO price.
Southern Palladium has said that with the funds raised from its IPO, it "is well capitalised to accelerate exploration at its 70%-owned Bengwenyama project".