Swick Mining debuts at 30 pct premium to offer price

Drilling services company Swick Mining Services Ltd has debuted on the Australian Stock Exchange at a 32.5 per cent premium to its offer price of 20 cents.

Shares started trading at 26 cents, but rose to a high of 32 cents before closing up 11 cents, or 55 per cent, at 31 cents each.

South Guildford-based Swick, which provides specialist services to the resources and mining sector, raised $4 million via 20 million shares in its oversubscribed initial public offering.

"We are really pleased with how strongly the capital raising was supported, with the offer closing over-subscribed and only approximately four weeks after the prospectus was lodged," said managing director Kent Swick, whose father founded the company in 1960.

"It is a sign of the times, with the Australian resource and mining industry booming on the back of strong world commodity prices."

The Swick family holds a 71 per cent stake in the newly-listed company, whose clients include BHP Billiton Ltd, Consolidated Minerals Ltd, Worsley Alumina and Barrick Gold.

It operates 23 drill rigs and employs more than 180 people.

A further 24 per cent of shareholders are based in WA.

The Company has implemented the first stage of an aggressive expansion strategy with the aim of increasing operational capacity, revenue levels and market penetration with outstanding results.

The introduction of underground diamond drilling and surface air-vac drilling successfully complemented the Company's historical core business of underground long-hole drilling and surface RC drilling, delivering 256% revenue growth over the past two years.

IPO funds will support Swick Mining Services as it moves into the next stage of its expansion strategy, initially focused on extending the underground diamond drilling division.