The Firetail Resources Limited (ASX: FTL) share price blazed through its debut on the ASX today.
It came after the battery minerals explorer provided an update regarding its capital raise.
At market close on Wednesday, Firetail shares finished up an astounding 46% to 36.5 cents. But not before peaking at 38.5 cents in afternoon trade, marking a 54% gain for investors.
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Firetail announces successful listing on ASX
In today's statement, Firetail advised it has successfully raised $8.125 million (before costs) through its entitlement offer.
Subsequently, Firetail issued 32.5 million shares at 25 cents apiece to eligible shareholders.
The company said it received overwhelming support, with existing shareholders taking up to 40% of the initial public offer (IPO). This included the full support from key stakeholder and fellow miner, Gascoyne Resources Ltd (ASX: GCY).
In addition, Firetail secured a $2 million cornerstone investment from Chinese battery materials company, Shanghai Jayson New Energy Materials (Jayson).
Notably, Jayson is owned by Chinese entrepreneur, Mr Feng Liang, who is also chairman of Putailai. The latter is the world's largest cathode materials producer and lithium battery recycling operator.
The listing of Firetail shares follows the demerger of now-defunct Firefly Resources Ltd (ASX: FFR).
In turn, debuting on the ASX will provide Firetail with the capital it requires to continue to explore and develop its key assets as an independent company.
Proceeds from the entitlement offer will be used to fund exploration of the company's projects across Western Australia and Queensland. The exploration program aims to undertake follow-up drilling, and identifying and assessing exploration targets in project areas.
Management commentary
Firetail executive chairman Brett Grosvenor touched on the IPO, saying:
We are extremely pleased with the response from existing shareholders, as well as institutional and retail investors to our IPO, which was significantly oversubscribed.
We very much appreciate and welcome the significant cornerstone investment in Firetail by Shanghai Jayson New Energy Materials Co., Ltd. Investment in exploring for and developing future-facing metals is our shared focus and their support Is a strong endorsement of our team and projects. Our suite of assets, strong shareholding support and the exposure to the rapidly expanding battery metals industry, means that Firetail is well-positioned to advance our projects towards development.
More on the company and the Firetail share price
Founded in 2021, Firetail has established an extensive battery-metal-focused portfolio of exploration assets across Australia.
This includes its Yalgoo lithium project, Patterson copper and gold project in Western Australia, and the Mt Slopeaway nickel, cobalt and rubidium project in Queensland.
As such, Firetail is seeking to develop its portfolio of assets through exploration studies in the short to medium term.
Firetail commands a market capitalisation of roughly $21.6 million and has around 61.78 million shares on issue.
