Patriot Battery Metals share price rockets after IPO

There's a new lithium share in town. Here's what you need to know…

| More on:
A man wearing glasses and a white t-shirt pumps his fists in the air looking excited and happy about the rising OBX share price

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

  • A new lithium share has hit the ASX boards today
  • Its shares are rocketing materially higher from their IPO listing price
  • Patriot Metals is based in North American and owns the promising Corvette Property

The Australian share market has just welcomed its latest lithium share, with the Patriot Battery Metals Inc (ASX: PMT) share price hitting the ASX boards at noon.

This follows an initial public offering (IPO) which raised a modest $4.2 million at 60 cents per new CDI, giving it an indicative market capitalisation of $553 million.

A big first day for the Patriot Battery Metals share price

Anyone lucky enough to have been able to grab hold of shares in this IPO is likely to be celebrating now!

At the time of writing, the Patriot Battery Metals share price is trading at $1.19. That is almost double the IPO listing price.

But that gain may not come as a surprise to investors. That's because Patriot Battery Metals has been trading on the Canadian share market for several months and the ASX-listed CDIs are equally to 10 of these shares.

The Patriot Battery Metals share price in Canada closed yesterday's session at C$8.54. At current exchange rates, this equates to $9.35, which would value each CDI at approximately 93.5 cents.

Though, judging by its performance on the ASX today, it appears that local investors believe the company's Canadian shares are undervalued.

What is Patriot Battery Metals?

The Australian share market's latest lithium share is based in North America and owns several promising battery material projects.

The company's flagship asset is the 100% owned Corvette Property, located near the Trans-Taiga Road and powerline infrastructural corridor in the James Bay Region of Québec.

Management notes that the land package hosts significant lithium potential highlighted by the 2.2 km long CV5 spodumene pegmatite with notable drill. Additionally, the property has also previously found significant gold samples.

Aiming to take Patriot Battery Metals from explorer to producer is an experienced management team. This includes former Pilbara Minerals Ltd (ASX: PLS) CEO, Ken Brinsden, as its non-executive chairman.

'A major milestone'

Patriot Battery Metals' CEO, Blair Way, was pleased that the company was now listed on the ASX. He commented:

It is great to be trading on the ASX. With the ASX listing blackout behind us I look forward to getting back to our normal news flow providing progress updates and assay results. Commencing trading on the ASX is a major milestone for the company and I appreciate the significant efforts of our team to make this happen.

Motley Fool contributor James Mickleboro 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 Scott Phillips.

More on Resources Shares

A happy construction worker or miner holds a fistfull of Australian money, indicating a dividends windfall
Dividend Investing

Want to bank the Rio Tinto dividend? You'll need to be fast!

Rio Tinto is about to pay a hefty dividend.

Read more »

Miner holding cash which represents dividends.
Dividend Investing

A 22% yield on Fortescue shares? Here's how these passive income investors achieved it!

Fortescue shares are popular among passive income investors for their juicy fully-franked dividends.

Read more »

Miner looking at a tablet.
Resources Shares

How global job cuts could boost the BHP share price

The mining giant is planning cost-cutting to help its profits.

Read more »

Man with rocket wings which have flames coming out of them.
Share Gainers

This ASX All Ords stock just surged 88% in less than 3 days! Any guesses?

The ASX All Ords stock is drawing intense buying interest from investors this week.

Read more »

Scared looking people on a rollercoaster ride representing the volatile Mineral Resources share price in 2022
Resources Shares

How is the Fortescue share price down 3% today?

Shareholders should be cheering today's Fortescue losses.

Read more »

2 people at mining site, bhp share price, mining shares
Resources Shares

Why is the BHP share price trailing the ASX 200 on Tuesday?

BHP shares are underperforming the ASX 200 today.

Read more »

Image of young successful engineer, with blueprints, notepad and digital tablet, observing the project implementation on construction site and in mine.
Resources Shares

These ASX 200 mining stocks can deliver 20%+ returns

Analysts are tipping big returns from these miners.

Read more »

Miner looking at a tablet.
Mergers & Acquisitions

Alumina shares leap 8% on Alcoa takeover bid

ASX 200 investors are sending the Alumina share price soaring following confirmation of Alcoa’s takeover intentions.

Read more »