It’s still early days but I reckon that EQH is in with a good chance of being IPO of the year – not that it would be very difficult.
Below is a list of resource IPOs from this year that I compiled with the amount they raised, the raising price and their last sale price at time of writing. I take no responsibility for the accuracy of this data although it is the best I could conjure up based on some quick research:
CZI - $3m/20c/13c
RGX - $4m/20c/2c
SNY - $9m/20c/18c
CHK - $3m/20c/19c
TAR - $7.5m/20c/9c
HFR - $4m/20c/19c
PVD - $4m/20c/28c
GRX - $4.5m/20c/17c
ICZ - $7m/20c/20.5c
SPA - $2.6m/20c/17c
CQC - $34m/20c/9.5c
ZTA - $12m/20c/13c
AHQ - $7m/20c/9c
As you can see, it’s not a pretty picture with only 2 of the 13 IPOs trading above their issue price with PVD being the standout performer up 40%.
EQH raised $2.5m at 20c & closed at 21c on volume of 150K – a nice, constrained effort for a first day of trade.
I am led to believe that the company had to return plenty of money to prospective investors which is always a good sign. The bids in the screen are indicative of plenty of buying support.
NS Hong Investments (BVI) Ltd is a substantial shareholder and was given $900K of the $2.5m proceeds. Spread holders were given $800K of stock & the remainder, I assume, to parties close to Ikin.I suspect that of the spread stock perhaps half (2m shares) will be sold over time & the remainder of the stock should be pretty ‘sticky.’ Half the stock is escrowed so EQH is very tight & any positive news should have a strong impact even in this crappy market.
In the prospectus it was mentioned that a helimag survey was completed on the tenement. The results from this should be out shortly, &, assuming they are positive, should impact positively on the price.
Similarly, should NS Hong Investments (BVI) Ltd want to buy more, they are not restricted by Aussie takeover restrictions as EQH is a BVI registered company.
Will be interesting to see if EQH can knock PVD off its perch as best IPO of 2012. We won’t have long to wait & see.
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