Two more companies joined the ASX today: An investment company specialising in microcap companies; and, an emerging oil and gas player in the Surat Basin in South East Queensland.
The ASX debutants today were H&G High Conviction (HCF) and Omega Oil and Gas (OMA).
H&G High Conviction (HCF)
H&G High Conviction has a portfolio of microcap ASX-listed companies with market caps between $50 and $100 million, in its quest to provide risk-adjusted returns to its investors.
Portfolio Manager Joseph Constable told Deal Room H&G High Conviction thoroughly researched the companies in which it invested.
“You can know more about the microcap than you can about a larger cap,” he said.
“It’s pretty difficult to be across the subsidiaries of BHP – let’s say – and know exactly what’s happening. But for a microcap, which is say a $15 million company, you can know the people running it.
“There is a lot of risk, but if you do your homework and you really do the thorough, thorough research – which we do – I think there is less risk.”
HCF’s initial public offering (IPO) raise fell well short of its target of $20 million, it only raised $5.2 million with 98.29 cent shares.
However, after starting its first day of trade at 98 cents, it headed north to $1.06 at 2:49 pm AEDT.
Omega Oil and Gas (OMA)
Omega Oil and Gas raised $15 million with 20-cent shares through its IPO.
In line with its listing today, it announced it had successfully completed testing two wells, namely Bennett-1 and Bennett-4 in the Surat Basin in South East Queensland, finding flows sufficient for long-term production.
Managing Director Lauren Bennett said the results were consistent with what was presented in the company’s September prospectus.
“The results of the well testing have been extremely pleasing and the first offtake of crude represents a key milestone for Omega,” she said.
But the share price struggled on day one, hovering below the IPO raise price at between 17 and 18.5 cents at 2:49 pm AEDT.
Another debut this week – Conrad Asia Energy (CRD)
There’ll be another ASX debut this week, Conrad Asia Energy which has raised $45 million with $1.46 shares through its IPO.
It’s headquartered in Jakarta, with its natural gas projects in the Mako Gas Field offshore of Indonesia.
Conrad Asia Energy is scheduled to list on Thursday, October 27.