Jupiter Mines lists on ASX with massive $240m IPO

Priyank Thapliyal and Brian Gilbertson.

Jupiter Mines, known for its 49.9 per cent-owned Tshipi manganese mine in South Africa (the third-largest in the world) and its Central Yilgarn iron ore projects in Western Australia, will today begin trading on the Australian Securities Exchange (ASX).

The Tshipi mine is doing particularly well, and is running at a rate of 3.3 million tonnes per annum (Mtpa) for the 2019 financial year (with flexibility for adjustment between 3-3.6Mtpa, subject to market conditions).

The company’s $240 million initial public offering (IPO) is the largest for a mining company since BHP spin-off South32 listed in 2015.

Jupiter used to be on the ASX but was delisted at the start of 2014 following shareholder approval at the company’s annual general meeting in November 2013. Shareholders expressed the belief that the company’s share price at the time did not reflect its true worth and possessed a low level of liquidity.

News that Jupiter Mines was to return to the ASX started to emerge at the beginning of the year. Australian Mining reported last month that Jupiter had lodged its prospectus with the ASX for listing.

The company’s IPO was heavily oversubscribed and is priced at the previously announced figure of 40 cents per share for 600 million shares ($240 million), leading to market capitalisation of $779 million overall. Jupiter is set to pay out 70 per cent of its profits as dividends for investors.

The company’s ASX launch ceremony will be held at the ASX building at Bridge Street in Sydney and is to be attended by chairman Brian Gilbertson and chief executive officer Priyank Thapliyal.

Thapliyal said he was very pleased with the strong interest shown in the IPO, stating that this could be “attributed to the strong cash generation of Tshipi resulting in healthy distributions by Jupiter to its shareholders. Tshipi’s tier one positioning on account of its long life, production capacity and low costs further adds to the investment appeal.”

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