Kali Metals Ltd (ASX: KM1) shares have been on a wild ride since landing on the ASX boards following the lithium explorer's IPO.
But what would have happened if you had invested $10,000 into the company's shares ahead of its listing? Let's find out.
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What is Kali Metals?
Firstly, in case you're not familiar with the Australian share market's latest ASX lithium share, let's have a quick look at it.
Kali Metals is a lithium explorer with a portfolio of lithium projects primarily in the Pilbara and Eastern Yilgarn regions in Western Australia. This includes its DOM's Hill and Marble Bar projects, which are co-owned by Chilean lithium giant Sociedad Química y Minera de Chile (NYSE: SQM).
The company attracted a lot of interest this month when a number of rich listers took part in its IPO. One of those was Mineral Resources Ltd (ASX: MIN) founder and CEO, Chris Ellison.
He personally invested in the IPO, with Mineral Resources then quickly acquiring a 10% holding separately following its listing.
What is $10,000 worth now?
If you had followed Ellison's lead and took part in the IPO with a $10,000 investment, you would have ended up owning 40,000 Kali Metals shares.
Since listing at 25 cents per new share, the company's shares have been as high as 89 cents.
If you were to have sold your holding at that point, your 40,000 shares would have had a market value of $35,600. That's over $25,000 more than your original investment in a matter of days.
Unfortunately, Kali Metals shares haven't managed to stay at those lofty levels and are currently fetching 55.5 cents.
This means that a $10,000 investment would currently be worth $22,200.
While not as great as selling at the top, this is still more than double your original investment in just over a a week. Pretty stellar!
