Atom raises $10m in IPO with oversubscriptions

Perth-based uranium explorer Atom Energy Ltd has closed its initial public offer fully oversubscribed, raising $10 million to fund exploration of its Northern Territory tenements.

The company offered around 26.7 million shares at 30 cents each to raise the money, as well as accepting oversubscriptions of up to $2 million from the issue of a further 6.7 million shares.

Atom, which was founded in January this year, aims to take advantage of four uranium tenements, three of which having already been granted to the company.

The company is chaired by chartered accountant and Summit Resources director Lindsay Colless in a non-executive capacity, with former West Australian Metals chief executive David Hamlyn serving as managing director. They are joined on the board by Kjeld Thygesen, Thomas Cahill and Bevan Tarratt as non-executive directors. Mike Schwabe is non-executive technical director for the company, with Karen Brown serving as company secretary.

Atom retained Montagu Stockbrokers Pty Ltd as its sponsoring broker and lead manager, while Trident Capital Pty Ltd acted as corporate advisors. BDO Kendalls Corporate Finance serve as investigating accountant while BDO Kendalls Audit & Assurance acts as auditors.

Price Sierakowski Lawyers will provide legal advice to the company.

The offer, which was not underwritten, opened on May 17.

The full text of a company announcement is pasted below

Uranium exploration company Atom Energy Limited ("Atom Energy") closed its $10 million Initial Public Offering (Offer) today more than a week early and oversubscribed.

Atom Energy sought to raise $8 million with the option to accept a further $2 million in oversubscriptions. At closing the Offer was heavily oversubscribed and the board has resolved to accept the maximum subscription.

Once listed on the Australian Stock Exchange (ASX), Atom Energy will have 84.7 million shares on issue and a pro forma market capitalisation of $25.4 million based on the Offer price of 30 cents per share.

Atom Energy's Managing Director, Mr David Hamlyn, said the capital markets had been very receptive to the Offer due to the quality of the Company's assets and the strength and experience of the board and management team.

"It's reassuring to see the support from institutional and retail investors who also believe in the significant potential that our uranium projects represent," said Mr Hamlyn.

"Demand has been strong and we eagerly await our listing on the ASX later this month and commencing life as a publicly listed company."

Mr Hamlyn said the funds raised from the Offer and the pending ASX listing would position Atom Energy to advance exploration and resource development on the Company's existing tenements in the Northern Territory and pursue its growth strategy.

Key advisors to the IPO include Trident Capital (corporate advisors) and Montagu Stockbrokers (sponsoring broker and lead manager).

Atom Energy will trade under the ASX code: AXY.