Two new companies have floated on the ASX today through an initial public offering (IPO) – DC Two Limited (ASX: DC2) and Duke Exploration Limited (ASX: DEX).
DC Two’s IPO price was issued at 20 cents per share. Shortly after trading began, the DC Two share price rose to 44 cents. It has since jumped up to 46.5 cents at the time of writing. Duke’s IPO price was at 25 cents, however after trading began, its share price immediately rose and is now trading at 28 cents.
About DC Two
DC Two designs and operates data centres. The company is looking to raise $5.5 million at 20 cents a share through today’s IPO, with a market capitalisation of $11.7 million.
The Perth-based company was founded in 2012 and currently owns two data centres – one at Bibra Lake and another at Osborne Park. DC Two’s best selling point is that it is able to construct modular shipping container-sized data centres, which it can easily deploy to any location in a matter of months, not years.
DC Two managing director Justin Thomas said the company intended to provide Western Australian businesses with more cloud hosting services.
“About 59 per cent of all Australian companies now have a cloud-first policy, which says that they don’t want to buy their own servers,” he said “COVID-19 is changing the conversation and customers are saying ‘OK, we got through the first wave, but it wasn’t great, how do we make it better?’”
The company will focus on the small and medium-sized customer segment rather than big enterprises, with equipment and bandwidth rental to retail customers not considered a big part of its offering.
DC Two made $2 million in revenue in the year to 30 June, and posted a net loss of $209,000.
“In the next few years, our main focus is to complete our ISO accreditation for our cloud platforms. A lot of mid-market enterprise clients are demanding that accreditation for IT security,” Mr Thomas said.
According to the company, DC Two will be the third local provider to have ISO accreditation on a cloud platform.
About Duke Exploration
Duke is a mining company with its flagship at the Bundarra copper, silver and gold project near Mackay in Queensland.
The company debuts on the ASX today to raise $8 million at a price of 25 cents per share. Commenting on the listing, Duke chairman Toko Kapea said that the IPO had been oversubscribed.
According to the mining company, Bundarra has the potential to be a large tonnage porphyry copper deposit, as mineralisation has been identified at surface. Duke began drilling at Bundarra in late October with six holes for 600 metres completed. All-up, the drilling project will comprise 43 holes for 7,040 metres with focus on the Mt Flora area.
Mr Kapea said the company’s objective for 2021 was to “delineate the potential scope of Bundarra and a maiden resource for Mt Flora”.
“We expect drilling to continue throughout 2021 at Bundarra with preparations for drilling underway at Duke’s Prairie Creek gold project,” he said.
Man who said buy Kogan shares at $3.63 says buy these 3 ASX stocks now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.
Find out the names of our 3 Post COVID Stocks – For FREE!
*Returns as of 6/8/2020
More reading
- ASX energy shares blast off after COVID-19 vaccine news
- Tesla (NASDAQ:TSLA)’s ‘Teslaquila’ tequila sells out in hours
- Why the Anteris (ASX:AVR) share price is edging higher today
- Kleos Space (ASX:KSS) share price drops 6% as capital raising announced
- An ASX ETF for uncertain times
The post Share prices jump for two new IPOs on the ASX today appeared first on Motley Fool Australia.
from Motley Fool Australia https://ift.tt/3khS22e
Leave a Reply