EverGreen Lithium share price rockets after IPO: everything you need to know

This lithium share is catching the eye after its successful IPO.

James Mickleboro

Author Bio James Mickleboro is an investment writer and analyst who has worked with The Motley Fool Australia for 10 years, covering ASX shares, market news, broker research, dividends, growth stocks, and long-term investing ideas. Over that time, James has written extensively about Australian equities and developed a particular focus on helping everyday investors understand the stories behind share price moves, company announcements, broker views, and broader market trends. His best investment recommendation was identifying Afterpay while it was still a small-cap growth share, before its rise into one of Australia’s biggest technology success stories. His worst investment lesson came from CSL Ltd (ASX: CSL), where he was burnt by believing management could turn the business around sooner than the market ultimately allowed. Areas of Expertise ASX shares Growth and dividend investing Broker research Interpreting company announcements Market news Portfolio strategy Long-term wealth creation Education Bachelor of Politics, Philosophy and Economics. CFA Institute Social Media LinkedIn Favorite Investment Quote "It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price." — Warren Buffett

Published April 11, 2023 12:18 pm AEST

The EverGreen Lithium (ASX: EG1) share price has had a positive start to life as a listed company.

In morning trade, the ASX lithium share rocketed 20% higher than its IPO listing price to 30 cents.

A woman jumps for joy with a rocket drawn on the wall behind her. — Image source: Getty Images

What is EverGreen Lithium?

This morning, EverGreen Lithium became the latest lithium developer to list on the Australian share market.

It listed on the ASX after raising $7 million at 25 cents per new share. This gave the company a valuation of approximately $45 million.

These funds will be used to finance the exploration program for its projects in the Northern Territory and Western Australia.

Interestingly, these projects are relatively close to those owned by fellow ASX lithium shares Core Lithium Ltd (ASX: CXO) and Liontown Resources Ltd (ASX: LTR).

EverGreen owns two projects in the Northern Territory. These are its flagship Bynoe project and its Fortune project. The former is adjoining Australia's newest lithium mine, Finniss, owned and operated by its neighbours Core Lithium.

Pleasingly, management highlights that the flagship Bynoe project exhibits many of the geological features that were key to the Finniss discovery. Through methodical exploration and learning from Core's regional experience, the company hopes to emulate their success.

Over in Western Australia, the company has the Kenny project. It is in close proximity to Liontown's Buldania project.

Commenting on its projects, the company said:

The Board of EverGreen believes that it has assembled a portfolio of assets with the potential to position the Company at the forefront of the battery metal revolution and a team with the skill set to optimise this tenure. Both the Board and senior management have a substantial shareholding in the Company to ensure alignment with shareholder interests.

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