Kali Metals Limited (ASX: KM1) shares will be landing on the ASX soon.
This follows the company's successful completion of its initial public offering (IPO).
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What is Kali Metals?
Kali Metals will shortly be the latest ASX lithium share to trade on the local bourse.
It is still at the explorer stage of the cycle and has rights to explore for lithium across multiple projects in Australia. These are primarily in the Pilbara and Eastern Yilgarn regions in Western Australia, but also the Lachlan Fold Belt in Northern-eastern Victoria and Southern New South Wales.
The company has close ties with lithium giant Sociedad Química y Minera de Chile (NYSE: SQM). In fact, the Chilean miner has earn-in agreements for up to 70% of the DOM's Hill Project and Marble Bar Project.
The IPO
Kali Metals successfully raised $15 million from its initial public offering through the issue of 60 million shares at an issue price of $0.25 per share. This will give it a market capitalisation of $36 million at listing and an enterprise value of $21.1 million.
Kali Metals shares are scheduled to commence trade on Monday at noon. And given the weakness in the lithium industry at the moment due to falling battery material prices, it will be interesting to see how the market responds to another listing.
Though, the early signs are good. According to the AFR, the IPO was opened and closed in less than 20 minutes and was massively oversubscribed.
Mineral Resources Ltd (ASX: MIN) founder and managing director, Chris Ellison, is understood to have taken a big stake in the company as part of the offering. Other notable names reportedly include the family offices for the Myer and Baillieu families.
