The Minerals 260 Ltd (ASX: MI6) share price has ended its first week on the ASX below its prospectus‘ offer price.
Under the Minerals 260 prospectus, investors could get their hands on shares in the company for 50 cents apiece.
The Liontown Resources Limited (ASX: LTR) spin-off underwent its initial public offering (IPO) on Tuesday afternoon. It reached an impressive 75 cents in intraday trade on Tuesday before finishing its first day on the ASX at 60 cents.
However, despite Tuesday’s strong performance, the gold, nickel, copper, and platinum-group elements explorer‘s stock finished the week lower than its offer price.
As of Friday’s close, the Minerals 260 share price is 48 cents, 2% lower than its previous close.
For context, that’s 4% lower than its offer price, 33% less than its closing price on Tuesday, and 36% lower than its brand-new record high.
It also leaves Minerals 260 with a market capitalisation of around $105.6 million
Let’s take a closer look at Minerals 260’s first 4 days as a listed entity.
Minerals 260 share price’s turbulent week
The Minerals 260 share price has ended the week lower than its offer price despite no news being released by the company.
While the market initially reacted well to the ASX newbie – boosting its shares 20% higher than its offer price on Tuesday – the positive reception didn’t last long.
On Wednesday, Minerals 260 shareholders watched as the market pushed the company’s share price down 23%. It closed at 46 cents on Wednesday.
A brief gain on Thursday was counteracted on Friday, likely leaving some Minerals 260 investors slightly bitter.
However, those who got in on Minerals 260’s IPO through Liontown’s pro-rata offer have finished the week with a silver lining.
The Liontown share price surged 13.9% yesterday – alongside many ASX lithium shares. Additionally, it managed to hold onto its gains today.
The post Minerals 260 (ASX:MI6) share price ends wild first week below list price appeared first on The Motley Fool Australia.
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More reading
- Why ASX lithium shares are booming on Thursday
- Here are the top 10 ASX shares today
- Which ASX 300 shares are the major movers on Thursday?
- Why Bank of Queensland, Fortescue, Liontown, & Pact shares are dropping
- The Minerals 260 (ASX:MI6) share price has lost 28% since yesterday’s open
Motley Fool contributor Brooke Cooper 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.
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