Kali Metals Limited (ASX: KM1) shares have made their eagerly anticipated arrival on the ASX boards on Monday.
And what a start they have had!
But firstly, last week, Kali Metals successfully completed its initial public offering (IPO), raising $15 million through the issue of 60 million shares at an issue price of $0.25 per share. This equates to a market capitalisation of $36 million at listing.
The lithium explorer reportedly raised the funds in under half an hour following a heavily oversubscribed IPO that saw investments from the likes of Mineral Resources Ltd (ASX: MIN) founder and managing director Chris Ellison and the family offices for the Myer and Baillieu families.
They appear to see promise in its lithium projects that 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.
Lithium giant Sociedad Química y Minera de Chile (NYSE: SQM) certainly does. The Chilean miner has earn-in agreements for up to 70% of the company's DOM's Hill Project and Marble Bar Project.
Image source: Getty Images
How are Kali Metals shares performing?
Despite most ASX lithium shares falling on Monday, that hasn't stopped Kali Metals shares from shining on their share market debut today.
At the time of writing, the lithium explorer's shares are changing hands for 46.5 cents.
This is 86% higher than its IPO listing price of 25 cents per share and lifts its market capitalisation to approximately $67 million.
Investors appear excited about what might lie beneath the company's tenements, but time (and drilling) will tell if there's something significant under there.
Commenting on the IPO, Kali Metals managing director, Graeme Sloan, said:
It is a great time to become an ASX-listed lithium exploration company with activity in the sector high and the long-term fundamentals for the commodity strong.
With the emergence of lithium as one of the most important critical minerals that will enable the global energy transition, this is an ideal time to provide investors with an opportunity to invest in a company with world-class projects in Tier 1 locations. We are excited about the potential that our project portfolio offers shareholders and the role Kali can play in the future growth of the lithium industry.
