The Patriot Lithium Limited (ASX: PAT) share price has hit the ASX boards running this morning following the completion of its initial public offering (IPO).
In morning trade, the lithium explorer's shares rose a whopping 120% from their IPO price to 44 cents.
If you're getting a sense of déjà vu, you're probably not alone.
Earlier this week, another similarly named lithium share, Patriot Battery Metals Inc. (ASX PMT), doubled in value after completing its own IPO.
What is Patriot Lithium?
Patriot Lithium is a United States based lithium explorer with a focus on the Black Hills region of South Dakota and the Pegmatite Belt region of Arizona.
Management notes that these two regions were selected as a high priority to achieve the company's goals of acquiring, exploring, developing, and mining high grade hard rock lithium projects in North America following a systematic and technically driven prospectivity review of lithium projects in the United States.
The company raised $10 million from its IPO through the issue of 50 million shares at an issue price of $0.20 per share. Combined with other shares on issue, this gave it an indicative market capitalisation of $16.9 million. Though, following today's gain, this has now increased to approximately $40 million.
Patriot Lithium's non-executive chairman, Philip Thick, appears positive on the company's future thanks to its experienced management team and increasing demand for lithium in North America. He said:
The US supplies only 1% of global lithium and imports have doubled since 2014. In terms of US Lithium demand, Ford and Volkswagen have formed a global alliance with a focus on North America, to build EV's and EV Technologies.
With both these market dynamics, and government and industry strategies in mind, the Company set out to secure high grade hard rock (spodumene) projects based on a technically driven prospectivity review of lithium projects across the US and is now set to commence an aggressive exploration and development program across its projects in the Black Hills and Pegmatite Belt regions, seeking high grade hard rock (spodumene) mineralisation.
The Board has significant expertise and experience in the lithium industry and will aim to ensure that funds raised through the Public Offer will be utilised in a cost-effective manner to advance the Company's business.
