Listed Western Australian companies raised a total of $936 million in new capital in the first three months of 2007 through initial public offerings and secondary capital raisings.
Listed Western Australian companies raised a total of $936 million in new capital in the first three months of 2007 through initial public offerings and secondary capital raisings.
The gold sector was the biggest contributor to the total. Eight existing gold producers and explorers signed deals that will allow them to raise a total of $313 million, while another eight new gold explorers listed on the Australian Securities Exchange during the quarter.
A total of 23 WA companies completed IPOs in the March quarter, raising a total of $138 million.
That was dwarfed by the $800 million listed WA companies raised in placements and rights issues.
The capital raisings were spread across a range of sectors, including iron ore, vanadium, uranium, automotive and property, illustrating the diversity of the current boom conditions enjoyed by many companies in WA.
Perth broking firms Patersons Securities and Euroz Securities were again prominent.
Patersons completed 19 transactions raising a total of $202 million in the March quarter.
Its biggest transaction was a $51 million capital raising for Precious Metals Australia Ltd, through a $48 million share placement and a smaller share purchase plan.
The capital raising provided a major component of the funding for the $200 million redevelopment of PMA’s Windimurra vanadium project.
Euroz completed six transactions raising a total of $99 million in the March quarter.
This included a $57 million capital raising for property company Aspen Group, which will use the proceeds to support two new funds management vehicles.
Property has been a fruitful sector for Euroz. This week, it signed up as underwriter for its biggest deal for the year, a $111 million placement and rights issue for Mandurah property developer Port Bouvard Ltd.
National broking firm Bell Potter Securities has also been active in the WA market.
It has underwritten a $90 million placement by Automotive Holdings Group Ltd, which will use the funds to acquire Queensland’s largest privately owned automotive dealer, Zupps Group.
Bell Potter also arranged a $12 million share placement by gold producer Troy Resources NL this month.
A notable feature of the secondary capital raisings was the amount of money raised overseas by WA companies.
Centamin Egypt Ltd, which is developing a gold project in Egypt, is raising $153 million through an initial public offering on the Toronto Stock Exchange, joining more than a dozen WA companies already listed on the TSX.
Biofuels company Natural Fuel Ltd is raising up to $125 million through an issue of convertible bonds through US firm Jefferies International, while gold producer Crescent Gold Ltd has struck a deal with global banking group Deutsche Bank to inject $120 million through a share placement.
Uranium explorer Extract Resources Ltd has also turned to the Canadian market, appointing a syndicate of Canadian brokers led by Haywood Securities to complete a $15 million share placement.
Extract plans to list on the TSX later this year, as does Tiger Resources Ltd, which this week announced plans to raise $15 million through Haywood Securities.
In the fast-growing iron ore sector, aspiring producer Australasian Resources Ltd raised $56 million through a share issue to Chinese steel producer, Shougang Corporation.
The uranium sector has attracted keen investor interest. Yellow Rock Resources Ltd and Prime Minerals Ltd were two of the top performing WA floats in the March quarter, according to accounting firm Deloitte.