Deep Yellow (ASX:DYL) share price wobbles as demand burgeons

The Deep Yellow Limited (ASX: DYL) share price is fluctuating today after the company announced its share purchase plan was heavily oversubscribed.

| More on:
2 people at mining site, bhp share price, mining shares

Image Source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Deep Yellow Limited (ASX: DYL) share price spent most of the day 4% higher than yesterday's closing price, but has dropped this afternoon after the company made an announcement. The uranium exploration company announced its share purchase plan, intended to raise $2 million, was heavy oversubscribed.

The company received applications for more than 3.7 times the number of shares available within the purchase plan.

At the time of writing, the Deep Yellow share price is 75 cents, flat on yesterday's close.

Let's look more into this afternoon's announcement from Deep Yellow.

Oversubscribed share purchase plan

 On the ASX, there are oversubscribed share purchase plans, and then there's what happened to Deep Yellow.

The company intended to offer a maximum of approximately 3,076,000 shares but received applications for 11,420,000.

Apparently, excited investors must have felt the offered price of 65 cents per share was a bargain.

The company will now conduct a pro-rata scale-back of applications. Each investor who placed an application with the company will receive 26.94% of the shares they applied to receive. Meaning Deep Yellow will be handing out its intended number of shares.

The issued shares are expected to be issued and allotted on 29 March.

Interested investors will begin to receive refunds from Deep Yellow for any excess shares they wished to purchase in the plan that they were unable to receive.

More about Deep Yellow 

Deep Yellow is a differentiated, advanced uranium exploration company. It is still in development phase but has plans to become world-wide geographically diverse asset portfolio.

The company states its long-term outlook is positive due to the role nuclear power will have in meeting clean energy targets.

Currently, Deep Yellow has 3 projects underway in Namibia.

Deep Yellow share price snapshot

The Deep Yellow share price is having a great year. It is currently up 50% year to date and an incredible 525% over the last 12 months.

The company has a market capitalisation of around $241.5 million, with approximately 322 million shares outstanding.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.

The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

A cute little kid in a suit pulls a shocked face as he talks on his smartphone.
Share Market News

Telstra share price hits 8-year high amid a lacklustre trading week

The ASX 200 communications services sector was the best performer last week, rising 2.96%.

Read more »

share buyers, investors, happy investors
ETFs

How I would build a $100,000 portfolio with ASX ETFs today

You don't need more than three ETFs to build a diversified portfolio...

Read more »

A young man pointing up looking amazed, indicating a surging share price movement for an ASX company
Broker Notes

These ASX 200 shares could rise 20% to 100%

Analysts are expecting these shares to deliver big returns over the next 12 months.

Read more »

Three people in a corporate office pour over a tablet, ready to invest.
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

The silhouettes of ten people holding hands with their arms raised against the sky, as the sun rises or sets in the background.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX shares finished the trading week on a high this Friday.

Read more »

A businessman stacks building blocks.
Technology Shares

6% gain! What's up with Block shares today?

Block shares are up more than 34% since 2 May.

Read more »

Broker looking at the share price.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A young man punches the air in delight as he reacts to great news on his mobile phone.
Share Gainers

Why ARB, Block, Mayne Pharma, and Paladin Energy shares are charging higher today

These shares are having a strong finish to the week. But why?

Read more »