Chrysos Corporation is now expected to float with a market value of close to $600m after receiving strong demand from investors to list the company at that level.
As DataRoom earlier reported, Chrysos has received demand that suggests a deal will be done where its market value is $600m at the very least, but the question is whether the advisers on the ticket can squeeze some slight increase in the price out of the bidders for the stock.
So far, the expectation has been that the CSIRO-backed gold mining analysis firm would have an initial public offering of about $200m and initially, fund managers were asked to pay a price of close to $750m for the business.
Now the messaging in the market is that the price is around the $600m mark.
It had been expected that the company would price its deal any day, although one possibility is that owners pass on the opportunity to embark on a transaction at the $600m value mark and wait until share market conditions improve.
Other float prospects including the ESG-focused commodities trading platform provider Xpansiv and chemicals and ingredients distributor Redox have briefly opted to pause their float plans in recent weeks until the trading environment becomes less volatile, but are ready to ramp up within a week if conditions improve.
A number of institutional fund managers already own Chrysos after buying shares in the pre-IPO raising, such as Regal Funds Management, Wilson Asset Management and Tribeca Investment Partners, so they may tip in more funds for the transaction.
A prospectus will be lodged in a few weeks ahead of a listing around the end of April or in early May.
Chrysos provides analysis for the gold mining sector through its PhotonAssay technology, so weighing in its favour will be the current environment of strong commodity prices.
Working on the float is Barrenjoey Capital Partners.
The company was founded by the CSIRO and is the global leader in the technology it offers.
It comes as Perenti told the market on Monday that it would sell its 7.1 million shares in Chrysos should its float proceed.
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