Q Copper yesterday extended the closing date of its initial public offering (IPO) until February next year after it was forced to delay the float earlier this week because of a key investor withdrawal.
The Cape Lambert Resources vehicle said it has also resolved to reduce the minimum raising under the IPO to $164.5 million through the issue of 164.5 million shares at an issue price of $1 each.
With an original target of between $203 and $214 million, the size of the fundraising target was reduced after an unnamed UK investor pulled out of the deal because of the effects of the Dubai credit crisis.
The boards of Q Copper and Cape Lambert, together with IPO lead manager Patersons Securities Limited, have consequently agreed to a variation of the pricing and closing date.
“Whilst we are disappointed with the need to reprice and extend the closing date of the Q Copper IPO, it will not affect our proposed partially franked, special dividend of 10 cents per share,” Cape Lambert executive chairman Tony Sage said.
“It still represents an excellent return over the acquisition cost of the asset in a relatively short period of time.”
It was believed that Cape Lambert had been targeting up to $158 million from the Q Copper float in return for reducing its shareholding to 10%, but the revised deal will see Cape Lambert receive a total consideration of approximately $137.5 million in cash and Q Copper.
News of the revised IPO comes just days after Talison Lithium withdrew from its planned listing due to its failure to reach an “acceptable value.”
A Talison spokesperson told MINING DAILY that the company, which had planned to raise between $143.5 million and $196.4 million, is unsure whether it will be pursuing another IPO in the near future.