This year has been an incredible one for initial public offerings. The IPO market remains red-hot, with a number of new high-profile debuts taking place in recent months. Following that trend, the Snow Lake Resources (NASDAQ:LITM) IPO has investors giddy. Shares of LITM stock more than doubled in earlier trading, now up approximately 90% from open.
What’s interesting about Snow Lake’s rapid rise is that this company is far from what most investors would think of as a hypergrowth stock. It’s a lithium miner, not a software or electric vehicle startup. However, it seems there are a few reasons investors are still jumping on board.
As a miner of battery-grade lithium, Snow Lake’s business model is intriguing to investors. Given the amount of growth expected via the electrification trend, lithium miners have become viewed as picks-and-shovels plays (perhaps literally) on this catalyst.
Beyond that, the world will need a lot more lithium to reach its electrification goals. Accordingly, investors appear to be seeking out high-grade lithium producers such as Snow Lake.
So what else do you need to know? Let’s dive into a few fast facts as Snow Lake starts trading today.
What to Know about Snow Lake and LITM Stock
- Snow Lake is a lithium exploration company based out of Manitoba, Canada.
- The lithium produced from its prospective mines will be used to power the growing EV consumer market.
- Accordingly, investors appear to be jumping on this stock on its first day of trading. As of this writing, more than 21 million shares have traded hands.
- Shares opened nearly 70% higher, and have trade as high as 145% above the offering price.
- The company raised gross proceeds of $24 million from its offering.
- This offering was done at $7.50 per share, in which 3.2 million shares of common stock were sold.
- Additionally, an over-allotment option was provided to underwriters of up to 480,000 commons shares.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.