Brazilian Rare Earths spinoff Alurion gets maximum A$50m subscription in IPO
Brazilian Rare Earths' spinoff company Alurion Resources has successfully raised A$50-million with its initial public offering (IPO) on the ASX.
Demand for the IPO exceeded expectations, with Alurion having accepted applications for 47.6-million new fully paid ordinary shares at A$1.05 apiece.
Alurion directors and management subscribed for more than A$4.5-million worth of shares in the IPO.
Following completion of the IPO at the maximum subscription, Alurion has 243-million shares in issue, which implies an undiluted equity value of about A$256-million at the IPO offer price.
Brazilian Rare Earths retains a strategic stake of 39-million Alurion shares, or about 16% of its issued share capital.
Admission of the company’s shares is expected by July 30, with normal settlement trading expected to start on August 3 under the ticker ‘ALU’.
Alurion is focused on developing the Amargosa bauxite and gallium project, in Brazil.
Having achieved the maximum subscription, Alurion now has a strong capital base from which to advance the project, including through an expanded and accelerated two-year programme.
Brazilian Rare Earths, meanwhile, remains on track to publish a scoping study on the Monte Alto rare earths project, in Brazil, during August.