A mining tech venture spun out of an ASX-listed mining services company has tanked on debut, falling 46%.
Perth-based Orexplore Technologies (ASX:OXT) demerged from parent company Swick Mining Services (ASX:SWK) and made its debut today having raised $2.44 million at $0.25 per share.
Orexplore shares closed at $0.135, down 46% amid a general hammering for small cap stocks on Friday.
It’s the second major plunge for an IPO this week with payday lending fintech Beforepay falling 44% in its first day of trade on Tuesday. Having floated at $3.41 per share, Beforepay closed the week at $1.95.
Orexplore is a mining scanning technology focused on the mining and metals sector It has developed a non-destructive technology for resources companies to analyse core samples in a faster and more sustainable way. Its first product is a transportable X-ray rock mass scanning technology that converts drill core samples into a three-dimensional data set to provide a “through the rock” image that can be converted into a digital twin.
The company floated with a market cap of around $25 million with a cash balance sheet of around $14.5 million following the demerger, with Swick kicking in around $12 million as part of the deal.
Orexplore managing director Brett Giroud said the business “is building on a strong base of advanced research and development from our origins in Stockholm”.
“With a healthy balance sheet, a rapidly advancing technology platform, and a highly skilled team, we are well positioned to create shareholder value as we aim to build a global technology company,” he said.