HeLIX Exploration PLC (LSE:HEX) shares have begun trading on London’s AIM market, rising quickly in early deals to a premium-priced debut.
It comes after the company’s oversubscribed IPO saw high investor demand.
Helix raised £7.5 million in the equity raise, with brokers garnering an order book in excess of £22 million during the placing process.
Early indications from Tuesday's market debut suggests demand remains, with the share trading beginning at 12.25p apiece.
The placing shares were priced at 10p each, which before today’s listing valued the company at £12.2 million.
The excitement lies in the nature of the opportunity for helium exploration and development in Montana, USA, which the directors intend to monetise in the long term to become a strategic producer of helium.
The Helix portfolio comprises fifty-two leases, along the 'Montana Helium Fairway', with mapped closures and a not-insubstantial P50 resource base of 2.3 billion cubic feet. Historic drilling and/or testing has identified gas in all target reservoir horizons.
Helium is in unprecedented short supply and demand from high-tech applications continues to grow.