Ann: Q Copper IPO Deferred , page-13

Cape Lambert withdraws Q Copper float amid volatile markets

CIYY BEAT: Michael Bennet From: The Australian February 04, 2010 11:40AM

CAPE Lambert's delayed $174 million float of Q Copper has become the latest IPO to fall over, with the Perth-based miner pulling the float because of "recent adverse market conditions".
The IPO had been scheduled to become the biggest resources float of 2009 before it was delayed and revised down from $214m in December, after about 25 per cent of investors failed to meet their settlement obligations.

But Cape Lambert said this morning it would withdraw the IPO until volatility in stock markets and commodity prices improved.

Shares in Cape Lambert were dumped on the news, falling more than 10 per cent to 45 cents in early trade.

Cape Lambert chief Tony Sage said: Whilst we are disappointed with the deterioration of the market in recent weeks, and its impact on the IPO, Lady Annie remains a very good copper project.

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Q Copper was expected to list on February 15 after Cape Lambert shareholders late last month approved the IPO, which would have disposed of the Lady Annie copper mine the miner had acquired for about $40m from the failed CopperCo in May 2009.

The non-underwritten IPO, which was priced at $1, closed yesterday and was managed by Patersons.

Cape Lambert said it would now proceed with its planned exploration program at Lady Annie, with the first drill rig to arrive on February 24.

The failure follows Macquaries cancellation of the $196m float of Talison Lithium in December 2009 and Morgan Stanley's aborted $1 billion float of its Investa property trust in November 2009.

Cbio also delayed its IPO in December 2009 and revised down the minimum target to $7m from $13m.

UK broker Mirabaud Securities, which acted as the UK placing agent on the Q Copper IPO, has denied it was British institutions that caused the first delay to the float.

At no time did UK institutions fail to pay, said Mirabauds Peter Krens in an email to City Beat.

Patersons head of corporate finance Aaron Constantine said Patersons' 75 per cent of the first IPO was over-subscribed.