Ravenous investor appetite for up-and-coming West Australian iron ore producers is likely to see Brockman Resources raise more than $A100 million at only a modest discount to its last trade.
Brockman and its financial adviser Patersons Securities are due to close the book on a 45 million share issue tonight (Tuesday) ahead of pricing tomorrow and a return to sharemarket trading on Thursday.
Brockman's shares last traded at $2.70 before being placed in a trading halt on Friday while it carried out the capital raising.
Interest from Australian and international institutional investors is likely to see Brockman price the equity raising at the upper end of its $A2.50 to $A2.60 indicative price range.
At those levels, the only modest discount to Brockman's last trade would compare favourably to normal discounts of between 10% and 20% for substantial capital raisings.
The deal echoes Atlas Iron's ambitious $100 million raising last month and reflects the frenzy of investor enthusiasm for the iron ore sector amid soaring prices and a flurry of deals by Chinese steel makers.
Source: Melbourne Age
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