CITY BEAT: Michael Bennet | October 26, 2009 Article from: The Australian
SUMATRA Copper and Gold debuted at a 20 per cent premium today in the Australian market after raising $12 million in an IPO.
The London-originated gold play was supposed to make its debut on the local stockmarket late last month but a series of administrative delays is believed to have held up the listing, which was first revealed by City Beat.
Sumatra opened at 24 cents, with sources close to the deal saying strong buying was coming from UK institutions, and hit a high of 25c in intraday trade, or 25 per cent above its issue price.
The IPO was taken up by US fund Evolution Capital Management, institutions from Switzerland and the UK, Australian investors and chairman Warwick Morris, who is believed to have taken up about 4.2 per cent of the IPO.
Perth-based Argonaut Securities will earn $60,000 from the successful raising on top of $115,000 in advisory fees.
The issue was done at 20c and was believed to have been oversubscribed.
