Greatland Gold ASX IPO priced at top of range at $490m as investors pile in

Greatland Gold’s IPO on the ASX has been popular as gold trades at record high levels. Picture: iStock

Greatland Gold’s Australian listing has been priced at the top of its range, taking the initial public offering value to about $490m.

Prospective investors were told the IPO is oversubscribed at the top of its price range at $6.60 per share just ahead of the close for the book build on Monday.

The price range set for the IPO was between $6.40 per share and $6.60 per share, which is equal to between 15.3p and 15.78p or $477m and $490m.

Newmont would sell 66.7m Greatland shares into the IPO and there would be a $50m raise.

Newmont was paid with a combination of cash and shares by Greatland Gold for the purchase of the Telfer gold mine.

The IPO will also see Greatland Gold enter the ASX 200 when it lists on June 24.

The price equates to 0.53 times Greatland Gold’s net asset value compared to its peers, which are trading at 0.8 times.

Greatland Gold’s Australian plans for a secondary ASX listing have been well received by investors, after a hiatus for new initial public offerings and it will hit the boards on the same day as Virgin Australia and just weeks before retirement living business GemLife floats on the ASX.

DataRoom reported that the deal was oversubscribed for at the mid-point of the price range at the weekend.

It comes at a time that the gold price has this year hit new records of over $5000 an ounce amid a period of global economic and geopolitical uncertainty.

Greatland is already listed in the United Kingdom, and it purchased the Telfer Gold Mine and the remaining 70 per cent interest in the Havieron gold project it doesn’t already own from Newmont last year for $US475m.

Greatland, with pre-emptive rights, was always known to be extremely keen to buy the assets and thought to be the most likely candidate – the question was always how it would fund a deal.

Telfer produces copper and gold and is the largest processing facility in the Paterson province in Western Australia.

The valuable Havieron processing facility is 45km away.

Greatland Gold’s UK market value is about £2.29bn ($4.79bn).

Advisers on the deal that will see it list as a $4bn-plus company in Australia are Bank of America, Barrenjoey, Canaccord Genuity, along with co-lead managers Argonaut Securities and Sternship Advisers.