The Vulcan Steel Limited (ASX: VSL) share price has landed on the ASX boards this afternoon following the successful completion of its initial public offering (IPO).
At the time of writing, the steel manufacturer’s shares are up 1.5% from their listing price to $7.20.
The Vulcan Steel share price commenced trade at midday after raising $371.6 million at $7.10 per share.
However, unlike other recent IPOs, the funds raised from the offering will not be used to support the company’s growth. Rather, these funds will go to existing shareholders that are selling down their holdings.
The release notes that this provides a liquid market for its shares and an opportunity for other investors to invest in Vulcan Steel. It also notes that listing on the share market provides Vulcan Steel with access to capital markets to enable additional financial flexibility to pursue growth opportunities.
Upon listing, Vulcan had a market capitalisation of $930 million. This has increased to just over $943 million following the rise in the Vulcan Steel share price.
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