Diamond producer Nare Diamonds makes solid ASX debut
Australian based diamond exploration and development company, Nare Diamonds made a solid debut on the Australian Stock Exchange yesterday, opening at 52 cents, which is a four percent premium to the issue price.
The stock traded as high as 53 cents, with 3,159,998 shares traded on the opening day. Nare Diamonds’ shares closed at 50 cents, putting the company's value at approximately $64m. The listing of Nare Diamonds on the ASX follows the early closure of its Initial Public Offer to raise $9.5m. The IPO closed on November 29, following great interest from Australian and European investors. Of the company’s first day's trade Nare Diamonds CEO Charles Mostert said: “We are extremely happy with the way Nare Diamonds has listed. Given the time of the year and volatility of the market leading into Christmas this is an excellent result for all involved.” “Our corporate advisor, Indian Ocean Capital, was able to create significant demand for the IPO and bring both on-shore and off-shore institutions together to create such a strong shareholder register on listing,” he said. The company intends to apply the majority of the funds raised through the IPO to the exploration and development of its world-class assets in South Africa. It also plans to complete a number of acquisitions that were delayed by the listing process. “We have some world class diamond projects that that are both in the production and exploration stages, and we will be looking to develop these in the near term,” Mr Mostert said. “We will also be proactively evaluating a number of exciting diamond projects that we had to put on hold until after the listing. With listing now complete we will fast-track these negotiations and expect to conclude at least one in January/ February of next year,” he said.