ASX IPO alert: Blockbuster copper listing coming soon

Last year, the Australian stock exchange lost one of its copper miners when OZ Minerals was taken over by BHP Group Ltd (ASX: BHP) for $9.6 billion.

This left investors with slim pickings when it comes to direct exposure to the base metal.

But fear not, a blockbuster ASX IPO is on the horizon that promises to give investors access to a high-quality copper operation.

Upcoming ASX IPO

The company in question is Metals Acquisition, which is due to hit the ASX boards later this month under the ticker code MAC.

In connection with the listing, the company is seeking to raise A$300 million (US$197 million) before costs through the issue of between 17,647,059 – 18,750,000 CDIs in the range of A$16.00 to A$17.00 each.

What is Metals Acquisition?

Metals Acquisition is an NYSE-listed copper miner that owns the CSA Mine at Cobar in regional New South Wales.

At 1.9 kilometres deep, it is one of Australia’s deepest underground mines. The mine, which was previously owned by Glencore PLC (LON: GLEN), is also one of Australia’s highest grade copper mines, producing approximately 40,000 tonnes of copper each year.

The company is currently listed on the New York Stock Exchange, which means that this ASX IPO will be for a secondary listing.

As of yesterday’s close, its NYSE listed shares were trading close to a 52-week high at US$12.84. This equates to A$19.76 in Australian dollar, which appears to indicate that its indicative ASX IPO price is at an attractive discount for local investors.

Metals Acquisition shares are scheduled to commence trading on the ASX on 20 February if all goes to plan.

The post ASX IPO alert: Blockbuster copper listing coming soon appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro 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 Scott Phillips.

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