How much were Fortescue shares when they first listed on the ASX?

Young boy with glasses in a suit sits at a chair and reads a newspaper.Young boy with glasses in a suit sits at a chair and reads a newspaper.

How much were Fortescue Metals Group Limited (ASX: FMG) shares when they were first listed on the ASX? Good question.

Fortescue is now an entrenched iron ore mining giant and ASX 200 blue-chip share. So it’s easy to forget it hasn’t actually been on the ASX for that long, especially compared to some of its peers like BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO)

So, Fortescue wasn’t always Fortescue. Before current chair Andrew ‘Twiggy’ Forrest took hold of the company, it was known as Allied Mining and Processing.

Allied Mining and Processing was a fledgling gold miner at the time, but hadn’t had too much success before Twiggy got involved. In fact, a report from The West Australian described Allied Mining and Processing as a “penny dreadful”.

Forrest took charge of the company back in July 2003 and engineered its name change at the same time. He also turned its focus to the red, iron-filled dirt of the Pilbara region of Western Australia.

Fortescue follows the red brick road to fame and fortune

At the time of the ‘new’ Allied Mining and Processing’s first appearance on the ASX under the Fortescue Metals name, it was priced at … just 2 cents a share. A few months before that, this was a one-cent company.

Of course, Fortescue’s current share price of $21.26 (at the time of writing), as well as its all-time high of $26.58, make that initial share price look utterly ridiculous. The rise from 2 cents to today’s price represents a gain of 106,000%.

No wonder Twiggy is now the country’s second-wealthiest person, according to the Australian Financial Review (AFR)’s Rich List. On its most recent estimate, Forrest is now worth $27.25 billion, only behind Gina Rinehart on $31.06 billion.

Fortescue shares have given investors massive returns in recent years. The company is up 7% in 2022 so far, and up 300% over the past five years. That’s on top of the monstrous dividends it has also been paying out in recent years. On the current Fortescue share price, this ASX 200 miner has a trailing dividend yield of 14.03%.

The post How much were Fortescue shares when they first listed on the ASX? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Fortescue Metals right now?

Before you consider Fortescue Metals, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Fortescue Metals wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

More reading

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/O0nrjCh

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s