Key Details and Strategic Overview
Metals Acquisition Limited (NYSE: MTAL), a prominent player in metal and mining operations, has set its sights on the Australian Securities Exchange (ASX) with an impending Initial Public Offering (IPO). The company aims to raise AUD 300 million (approximately USD 197 million) through the issuance of CHESS depository interests (CDIs), propelling its dual listing on the ASX.
Listing Date and Company Contacts
- Listing Date: 20 February 2024, 12:00 PM AEDT
- Company Contact: Metals Acquisition Limited, Phone: 0411 789 606
Principal Activities and Issue Type
- Principal Activities: Operation of the CSA Copper Mine in Cobar, New South Wales, Australia, and acquisition and operation of metals and mining businesses critical in the electrification and decarbonization of the global economy.
- Issue Price: AUD 16.0
- Issue Type: Chess Depositary Interests (CDIs)
- Security Code: MAC
- Capital to be Raised: AUD 300,000,000
- Expected Offer Close Date: 9 February 2024
Underwriters and Joint Lead Managers
- Underwriter: Not underwritten
- Joint Lead Managers: Barrenjoey Markets Pty Limited and Canaccord Genuity (Australia) Limited
Key Developments and IPO Structure
- Metals Acquisition Limited (MTAL) lodged a prospectus with the Australian Securities and Investments Commission on 26 January 2024, officially initiating the IPO process.
- The company seeks to raise AUD 300 million through the issuance of CDIs equivalent to 17,647,059 – 18,750,000 ordinary shares, maintaining equal ranking with existing shares.
- The offer encompasses an Institutional Offer, a Broker Firm Offer, and a Priority Offer, tailored for institutional investors, Australian retail clients, and select investors, respectively.
- The final CDI price, determined through a bookbuild process, falls within the indicative range of AUD 16.00 to AUD 17.00 per CDI.
- The Broker Firm and Priority Offers are scheduled to open on 5 February 2024, closing on 9 February 2024.
Utilization of Proceeds
The funds raised are designated for various purposes, including:
- Repayment of Glencore’s deferred consideration facility linked to the acquisition of the CSA Copper Mine.
- Augmentation of working capital to enhance operational flexibility and accommodate potential production growth.
- Provision of additional funding for exploration programs and mine development at the CSA Copper Mine.
- Covering costs associated with the IPO and other administrative expenses.
Advisory Team and Legal Representation
- Joint Lead Managers: Barrenjoey Markets Pty Limited and Canaccord Genuity (Australia) Limited
- Legal Advisors: Gilbert + Tobin, Skadden, Arps, Slate, Meagher & Flom, and Ogier serving as Australian, US, and Jersey legal advisors, respectively.
Metals Acquisition Limited’s move towards an ASX dual listing reflects its strategic vision for growth, aligning with the global shift towards electrification and sustainable practices. The IPO’s success will be closely monitored as it unfolds, impacting both the company’s trajectory and investor sentiments in the evolving metals and mining landscape.
