Dragon Energy opens $1.5m IPO

Nedlands-based Dragon Energy will be hoping to mirror the success of a fellow Western Australian phosphate explorer as it opens its $1.5 million initial public offer.

The company plans to issue up to 7.5 million shares at 20 cents each in its IPO, representing 5.2 per cent of the total issued capital on completion of the offer.

A minimum target of $1 million has been set. The offer is not underwritten.

Last year, Phosphate Australia, named best IPO by Deloitte, delivered returns at one stage of over 300 per cent to investors in an otherwise dark year for IPOs.

Dragon holds a suite of phosphate tenements in the Mt Isa region with Babbling Brooke Hill and Riversleigh projects the centerpieces were resources have already been delineated.

The company has planned a two-year $3.8 million exploration program at both projects to boost resources.

The company also has a five-year exclusive right to acquire an interest in any uranium projects in the Chinese province of Jiangxi as held by Jiangxi Zhonghe Mining Co's portfolio.

Chinese resources company Shandong Group has already invested $5 million in Dragon as seed capital to take a 56 per cent interest, post IPO, in the company.

On the Dragon board are Shandong chairman Jie Chen, managing director Gang Xu, executive director Anthony Ho and non-executive directors Qingyong Guo and Wenle Zeng.

The company plans to list on the Australian Securities Exchange on February 18.