Ivanhoe Electric Inc. (IE) is set to launch its U.S. IPO on Friday. Ivanhoe Electric Inc. is a domiciled minerals exploration and development company with a focus on developing mines from mineral deposits principally located in the United States. Its two material mineral projects are the Santa Cruz Copper Project in Arizona and the Tintic Copper-Gold Project in Utah. Below are 7 important facts to focus on into the IPO:
1. Ivanhoe Electric IPO Timing: Ivanhoe Electric Inc. is expected to have its IPO on the NYSE American and TSX on June 24, 2022. The stock ticker is ‘IE’.
2. Ivanhoe Electric IPO Price: The company anticipates the initial public offering price to be between $11.75 and $12.50 per share.
3. Shares Offered: The company is offering 14,388,000 shares of its common stock, granting the underwriters an option to purchase up to 2,158,200 additional shares. There will be 92,608,474 shares (or 94,766,674 shares if the underwriters exercise their option to purchase additional shares in full) outstanding after this offering.
4. Ivanhoe Electric IPO Valuation: A pricing at the midpoint of the range would value the company at around $1.15 billion.
5. IPO Underwriters: BMO Capital Markets, Jefferies and J.P. Morgan are acting as the underwriters and Raymond James, RBC Capital Markets and Scotiabank as co-managers for the offering.
6. Important Ivanhoe Electric Financials: For the fiscal years ended Dec 31, 2021, and 2020 the company generated total revenue of $4.65 million and $4.63 million, respectively. For the three months ended March 31, 2022, the company generated revenue of $6.76 million. For the three months ended March 31, 2022 and for the years ended December 31, 2021, 2020, and 2019, the company had a net loss of $17.7 million, $68.5 million, $29.9 million and $28.7 million respectively, and negative cash flows from operating activities of $14.6 million, $47.8 million, $23.0 million and $23.0 million respectively.
7. Ivanhoe Electric Total Addressable Market (TAM): According to the Q3 Copper Outlook Report, the green energy transition is the key driver for demand in the long term. Copper consumption in EVs is expected to be over 4,800 kt by 2040, compared to approximately 500 kt in 2021. Wind renewable energy sources are expected to consume 0.8 Mt of copper in 2040 and solar renewable energy sources are expected to consume 0.9 Mt of copper in 2040, compared to 0.6 Mt and 0.4 Mt in 2020, respectively.
By Davit Kirakosyan