Robert Friedland’s latest mining venture stumbled on its first day of trading, after launching into the most hostile stock market environment since the start of the pandemic.
Vancouver-based Ivanhoe Electric Inc. priced its initial public offering at US$11.75 a share, and raised US$169.1-million. Just over a week ago, as the company made its final rounds to investors in order to lock in orders, it had targeted selling its shares as high as US$12.50 apiece.
Ivanhoe Electric intends to use part of the proceeds to fund exploration at its Santa Cruz copper development project in Arizona and its Tintic copper and gold property in Utah.
Over the past few weeks, global stock markets have corrected into bear market territory, as fears grow that a global recession is imminent with central banks spiking rates in an attempt to rein in runaway inflation. Copper, the metal that Ivanhoe Electric is most exposed to, has also been crushed.
Ivanhoe Electric came under pressure right away on trading on the New York Stock Exchange on Tuesday, falling by 8.1 per cent on its debut to close at US$10.80 apiece.
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