Metals Acquisition Limited (MAC), which operates a New South Wales copper mine previously owned by Glencore, has upsized its initial public offering (IPO) to A$325-million.
The offer is being undertaken in connection with the company’s dual listing on the ASX.
Given the level of demand under the bookbuild process, MAC announced on Friday that the proceeds would be upsized by A$25-million and that the final price for the offer had been set at the top of the indicative price range, being A$17 per CHESS depository interest, or CDI.
Subject to the ASX approving MAC’s application for admission to the official list of the ASX and for quotation of the CDIs, settlement of the offer is expected to occur on February 14 with the issue of CDIs to occur on February 15.
The company will begin trading on the ASX on February 20.
Proceeds of the offer will be used to repay Glencore’s deferred consideration in connection with the acquisition of the Cornish, Scottish and Australian (CSA) underground copper mine near Cobar.
The proceeds will also increase working capital to facilitate operational flexibility and potential production growth, provide additional funding for exploration programmes and mine development at the CSA copper mine; and fund the costs of the offer and other administrative costs expected to be incurred by the company.
MAC chairperson Patrice Merrin said the support for the offer recognised and reflected the large workstream by employees, advisers and joint lead managers and added significant balance sheet flexibility to the business.
Barrenjoey Markets and Canaccord Genuity are acting as joint lead managers to the IPO. Gilbert + Tobin, Skadden, Arps, Slate, Meagher & Flom and Ogier are acting as Australian, US and Jersey legal advisers to the company in relation to the offer and ASX listing.
“Owning and operating an Australian copper mine we have long felt it was logical to dual list MAC on the ASX and I echo the Chair’s comments and thank all the people involved in this effort to bring a quality and unique offering to the ASX,” commented MAC CEO Mick McMullen.