Billionaire Robert Friedland will take his mining company, Ivanhoe Electric, public this week through an initial public offering (IPO). Ivanhoe will begin trading on Friday under the symbol IE on the New York Stock Exchange. The IE stock IPO will likely give Ivanhoe a valuation of up to $1.15 billion.
Ivanhoe is based in Vancouver, Canada, and Friedland serves as its CEO. The company mines for “copper and other critical minerals for electric cars and related clean-energy technology.”
The company owns land in Arizona and Utah, as well as a business focused on battery storage and “an oil and gas-focused data processing firm.” The latter two businesses generate all of its sales at this point, as the firm is not expected to bring in any revenue from mining anytime soon.
All Eyes on the IE Stock IPO
Ivanhoe anticipates that its IPO price will be between $11.75 and $12.50. In its last full fiscal year, the company’s top line came in at $4.65 million. But during the first quarter of 2022, it reported sales of $6.76 million. Last year, Ivanhoe generated a net loss of $17.7 million.
The IE stock IPO is notable, as IPOs in general have slowed lately. This will be the first major IPO in the U.S. for more than a month.
“We believe it is strategically important for the U.S. to develop its own resource base to match the domestic and global needs of the clean-energy transition through adequate supply of critical minerals,” stated Invanhoe in its IPO filing. It further added that America “is significantly underexplored and has the potential to yield major new discoveries of these metals.”
By 2040, more than 4,800 kilotons of copper are expected to be utilized in electric vehicles, up from about 500 kilotons last year.
On the date of publication, Larry Ramer did not hold (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.