This has been an incredible year for IPOs. The IPO market remains hot, with a number of new high profile debuts having taken place in recent months. Following this trend, the Snow lake resources (NASDAQ:LITM) IPO has giddy investors. LITM shares have more than doubled in previous trades, up about 90% from the open.
What’s interesting about Snow Lake’s rapid growth is that this company falls far short of what most investors would consider a hypergrowth stock. It’s a lithium miner, not software or an electric vehicle starter. However, it seems there are a number of reasons why investors are still jumping on board.
As a battery-grade lithium miner, Snow Lake’s business model is intriguing investors. Given the expected growth via the electrification trend, lithium miners have become seen as a pickaxe-and-shovel (maybe literally) game on this catalyst.
Beyond that, the world will need a lot more lithium to achieve its electrification goals. As a result, investors appear to be looking for high-quality lithium producers such as Snow Lake.
So what else do you need to know? Let’s dive into some quick facts as Snow Lake starts trading today.
What you need to know about Snow Lake and LITM Stock
- Snow Lake is a lithium exploration company based in Manitoba, Canada.
- Lithium produced from its potential mines will be used to fuel the growing consumer market for electric vehicles.
- As a result, investors seem to be jumping on this stock on its first day of listing. As of this writing, over 21 million shares have been traded.
- The shares opened nearly 70% higher and traded up to 145% above the offer price.
- The company raised gross proceeds of $ 24 million from its offering.
- This offer was made at $ 7.50 per share, in which 3.2 million common shares were sold.
- In addition, an over-allotment option was offered to the underwriters for a maximum of 480,000 common shares.
As of the publication date, Chris MacDonald does not have (directly or indirectly) any position in any of the stocks mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.