Lithium exploration company Kali Metals Ltd (ASX:KM1) has closed its Initial Public Offering (IPO) and will today join the ranks of ASX-listed companies.
The company says it enjoyed overwhelming investor interest. It initially planned to raise $15 million but had to advance the closing date due to high demand.
Oversubscribed
Joint lead managers, Bell Potter Securities Ltd and Canaccord Genuity (TSX:CF, LSE:CF) Ltd, oversaw a highly successful bookbuild for the retail offer on November 14, 2023, which closed within hours due to being multiple times oversubscribed.
The IPO's broker firm, institutional and chair's list offer components quickly closed following robust investor response, along with the priority offer for eligible Kalamazoo shareholders, which closed a little later, on December 4, 2023.
Significant interest from notable figures in the West Australian lithium sector and various institutional investors marked the bookbuild.
Kali's establishment stems from the spin-out of Australian lithium assets owned by ASX-listed Kalamazoo Resources Ltd (ASX:KZR) in Western Australia, New South Wales and Victoria.
Additionally, TSX-listed Canadian gold miner Karora Resources Inc contributed its Higginsville Lithium Project to the venture.
Details of the IPO are available in the prospectus on Kali's website. Settlement of the retail and priority offers occurred in mid-December 2023 and Kali's shares will commence trading on the ASX today.
Managing director Graeme Sloan said: “We are delighted that the IPO of Kali has received such strong support and investment from a wide range of high calibre investors who as shareholders will support Kali on the next stage of its journey.
“Some of these same investors have also indicated their interest in potentially exploring strategic opportunities with Kali as we move past the IPO process.
Formidable exploration team
“With a pipeline of advanced and green fields exploration targets, the recent appointment of Stuart Peterson as technical advisor – Geology will further strengthen what is already a formidable exploration team.
“Stuart’s experience in lithium discovery and development, as evident from his previous strategic role at Global Lithium in the discovery of the Manna deposit, will certainly play a crucial role in prioritising and allocating funds towards the multiple exploration targets already identified at the Higginsville Lithium Project.
“This is an exciting time for Kali and our new IPO shareholders and on behalf of the Kali Board of Directors I would like to thank all those involved with such a successful IPO.”
Kali received advisory support from Grant Samuel and Gilbert and Tobin for the financial and legal aspects of the deal, respectively.