An initial public offering (IPO) is when a private company offers shares to the public for the first time.
It can be hard to keep track of every listed ASX stock. That's because there are more than 2,000.
But companies are actually joining and falling off the ASX throughout the year.
Two stocks that recently joined the ASX are BMC Minerals Ltd (ASX: BMC) and Advanced Energy Minerals Ltd (ASX: AEM).
BMC Minerals
BMC Minerals is a mineral exploration company. It has significant exposure to both precious and base metals prices, particularly silver, zinc, copper, lead, and gold.
According to the company, it is developing its Kudz Ze Kayah (KZK) Project in the Yukon Territory, Canada, to become a responsible, near-term, and globally significant polymetallic producer.
The project is expected to operate for a minimum of 9 years. It will produce high grade zinc, copper, and HPM concentrates with significant gold and silver credits.
Once in operation, KZK is expected to be Canada's largest silver and zinc producer and a top 15 Canadian copper producer.
BMC raised $100 million before listing on the ASX.
The company said it will now be used for more exploration to extend the potential mine life and to complete optimisation studies.
BMC Minerals Ltd (ASX: BMC) is up 26% over the past month since its initial listing and closed yesterday at $3.15.
For context, the S&P/ASX 200 Index (ASX: XJO) is up 2% in that same period.
Advanced Energy Minerals
Advanced Energy Minerals is a global supplier of ultra-pure aluminium derivatives.
It is also a manufacturer of high purity alumina (HPA).
Its operations are based at two main sites: Technical Development Centre in Montreal and our first full-scale production plant at Cap-Chat, Quebec.
However, since first listing on the ASX, it has seen its share price fall 17%.
Speculative buy
Since their IPOs, one of these two stocks has drawn positive valuations from experts.
The team at Morgans recently initiated coverage following the IPO of BMC Minerals with a target price of $4.90.
This is along with a speculative buy recommendation.
We model steady state average annual financials of US$780m revenue, US$435m EBITDA at a 52% EBITDA margin, US$287m FCF and FCF yields of 29% based on precious and base metals price assumptions well below current spot prices.
This price target indicates more than 55% upside from its current share price.
TradingView also has an average one-year price target of $5.03, which indicates more than 59% upside.
