The VHM Limited (ASX: VHM) share price is tumbling as it floats on the Aussie bourse on Monday.

The rare earths and mineral sands developer's goal to become a global supplier of critical minerals caught the attention of many market watchers prior to its listing.

Also likely raising eyebrows is Aussie billionaire and Mineral Resources Ltd (ASX: MIN) boss Chris Ellison's majority holding. Ellison boasts a 9.14% stake at the time of listing.

Right now, excited investors can get their hands on VHM shares for $1.20 each. That's 11.1% lower than the company's initial public offering (IPO) offer price of $1.35 apiece.  

Let's take a closer look at the newest rare earths and minerals sands stock gracing the ASX.

VHM share price rockets as it hits the ASX after IPO

Those who got in on the VHM IPO will likely be disappointed this afternoon as the company's share price slumps 11% on its ASX float.

It raised approximately $30 million in an oversubscribed IPO, offering new shares for $1.35 apiece.

That left the company expecting a market capitalisation of $266 million at its offer price.

What does VHM do?

VHM is behind the Goschen rare earths and mineral sands project in Victoria – dubbed by chair Donald Runge a "fast-emerging tier one" asset. Runge continues, via the company's prospectus:

As the world continues to transition to renewable and environmentally friendly products like electric vehicles, the gap between increasing demand for rare earth and mineral sands and declining supply is anticipated to widen.

VHM is seeking to capitalise on these favourable market conditions and establish itself as a world-leading producer and supplier of critical minerals.

The project has a rare earth deposit of 413,107 tonnes of total rare earth oxide and an accompanying mineral sands resource.

Its definitive feasibility study was completed in March 2022.

The $30 million raised through the company's IPO will fund to a final investment decision for the project's first phase. That's expected in the second half of this year.

After that, its first production is targeted for early 2025.

VHM recently agreed to provide Chinese rare earths giant Shenghe with around 60% of the project's nominal production rate.

It's also working on tests for a hydrometallurgy circuit to further refine rare earths produced at the project.

The post VHM share price plummets 11% following $30m IPO appeared first on The Motley Fool Australia.

The fireworks have been set off, the ball has dropped, and the party has ended. 2023 is officially here, and with it comes three new ASX hydrogen, lithium, and rare earths shares, each floating in January.

Let's take a look at the companies set to float on the Aussie bourse following their initial public offerings (IPOs).

3 new shares hitting the market in 2023

VHM Limited (ASX: VHM)

Of the three shares, the first to list on the ASX following its IPO is expected to be rare earths and mineral sands developer VHM Limited. It's anticipated to list on Monday.   

The company owns the globally significant Goschen project, located in Victoria. It's aiming to be a major supplier of critical minerals for renewable energy, technology, and batteries.

The project's first production is expected in the first half of 2025.

VHM is aiming to raise $20 million through its IPO, with an additional $10 million of oversubscriptions accepted. It's issuing shares for $1.35 each.

It's expected to boast a market capitalisation of between $256 million and $266 million at its offer price.

Gold Hydrogen Limited (ASX: GHY)

VHM will likely be quickly joined on the ASX by hydrogen company Gold Hydrogen. The stock is anticipated to begin trading on 13 January.

It's planning to raise around $20 million by offering shares for 50 cents under its IPO.

Unlike many other hydrogen outfits, the company is involved with naturally occurring hydrogen. It's hoping to kick start drilling for the gas in South Australia in the September quarter.

Gold Hydrogen is considering monetising its production by means such as onsite power generation, pure hydrogen generation and distribution, and storage applications.

Gold Hydrogen is predicted to list with a $70 million valuation, based on its offer price.

Patagonia Lithium Ltd (ASX: PL3)

Finally, Patagonia Lithium is also tipped to list on 13 January after raising up to $8 million through its IPO, issuing shares for 20 cents apiece.

Patagonia Lithium is, of course, a lithium company. It holds three projects in Argentina's lithium triangle, nearby others held by the likes of Lake Resources N.L. (ASX: LKE) and Allkem Ltd (ASX: AKE).

While the projects are considered prospective for lithium, the battery-making material hasn't been identified on any of the sites yet. Exploration at the projects is expected to kick off shortly after the company's ASX float.

It's anticipated to list with a market capitalisation of around $11 million.

The post Hydrogen, lithium, rare earths, oh my! Here are 3 shares floating on the ASX in 2023 appeared first on The Motley Fool Australia.