29Metals IPO priced at $2.00 per share

Molten copper. Picture: Bloomberg

The initial public offering of copper miner 29Metals has priced at $2 per share, the lower end of the range.

It comes after the price range on Friday morning narrowed to between $2 to $2.10 per share.

A book message sent out to fund managers said the IPO was covered at $2.05 per share.

This equated to five times its forecast 2021 earnings before interest, tax, depreciation and amortisation.

The book build closed at 12.30pm (AEST) on Friday after launching on Thursday.

On Thursday, fund managers were told in a message that orders and indications received from institutional investors exceeded the base deal size.

Macquarie Capital, Credit Suisse and Morgan Stanley have been working on the June 23 listing, while retail broker Canaccord Genuity had been brought in recently.

Shares were to be priced at between $2 and $2.40 each, equating to a market value of $958m to $1.1bn, or $1bn to $1.2bn including debt.

Market participants have suggested that the IPO has been reasonably priced, given it is at a discount to the larger listed copper group Oz Minerals.

The business generated $621 million of revenue in the 2020 financial year and $185 million of EBITDA.

The company has had hopes to raise between $525.6 million and $609.1 million.