L&M’s shares listed at A20c on the ASX, falling as low as 19c before recovering to trade at 21c. They listed at NZ22c on the NSX, shot up to 25c, before settling back to close at 23c.
Over 4 million shares were traded on the ASX, and more than 400,000 shares on the NZX, as some investors opted to cash in straight away.
NZX markets development manager Geoff Brown said it was encouraging to see another listed New Zealand resources company and that it was raising capital in New Zealand.
It was also encouraging to see such an enthusiastic uptake by New Zealand investors, who grabbed over 45% of the 100 million shares raised through the initial public offering that closed fully subscribed on December 22, he added.
L&M, which trades under the ticker LMP on both exchanges, was the first new listing on the NZX for 2007.
L&M managing director John Bay told PetroleumNews.net from Christchurch this morning that yesterday was “a great start, an ideal start” for the company and its separation from former owner, the privately held L&M Group involved in coal, coal seam methane and lignite (brown coal).
“The markets did not think we were overselling or underselling ourselves, they agreed with our story and our potential,” Bay told PNN.
About 70% of the $A20 million raised had come out of Australia, but the largest number of investors was from New Zealand, with the register showing particularly strong support in the South Island, where the company’s onshore and offshore exploration permits were, he added.
Bay also said L&M should later this month acquire about 25km of 2D infill seismic over the Dean prospect in licence PEP 38226.
The Dean-1 well was scheduled to be one of the first three wells drilled in PEP 38226 within the next three months or so, along with Eastern Bush-1 and Merton Creek-1.
L&M is planning up to six wells over the coming year in its onshore prospects that have potential resources of close to 400 million barrels of oil and 194 billion cubic feet of gas. LMP has four onshore permits and one offshore permit in Southland.
