The Australian share market has just welcomed its latest lithium share, with the Patriot Battery Metals Inc (ASX: PMT) share price hitting the ASX boards at noon.
This follows an initial public offering (IPO) which raised a modest $4.2 million at 60 cents per new CDI, giving it an indicative market capitalisation of $553 million.
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A big first day for the Patriot Battery Metals share price
Anyone lucky enough to have been able to grab hold of shares in this IPO is likely to be celebrating now!
At the time of writing, the Patriot Battery Metals share price is trading at $1.19. That is almost double the IPO listing price.
But that gain may not come as a surprise to investors. That's because Patriot Battery Metals has been trading on the Canadian share market for several months and the ASX-listed CDIs are equally to 10 of these shares.
The Patriot Battery Metals share price in Canada closed yesterday's session at C$8.54. At current exchange rates, this equates to $9.35, which would value each CDI at approximately 93.5 cents.
Though, judging by its performance on the ASX today, it appears that local investors believe the company's Canadian shares are undervalued.
What is Patriot Battery Metals?
The Australian share market's latest lithium share is based in North America and owns several promising battery material projects.
The company's flagship asset is the 100% owned Corvette Property, located near the Trans-Taiga Road and powerline infrastructural corridor in the James Bay Region of Québec.
Management notes that the land package hosts significant lithium potential highlighted by the 2.2 km long CV5 spodumene pegmatite with notable drill. Additionally, the property has also previously found significant gold samples.
Aiming to take Patriot Battery Metals from explorer to producer is an experienced management team. This includes former Pilbara Minerals Ltd (ASX: PLS) CEO, Ken Brinsden, as its non-executive chairman.
'A major milestone'
Patriot Battery Metals' CEO, Blair Way, was pleased that the company was now listed on the ASX. He commented:
It is great to be trading on the ASX. With the ASX listing blackout behind us I look forward to getting back to our normal news flow providing progress updates and assay results. Commencing trading on the ASX is a major milestone for the company and I appreciate the significant efforts of our team to make this happen.
