IperionX capitalizes on titanium demand with A$100m placement

IperionX Limited (NASDAQ: IPX, ASX: IPX) has secured A$100 million through a placement of 31,250,000 new fully paid ordinary shares, issued at A$3.20 each. This capital injection aims to fund the expansion of its titanium production campus in Virginia. The funds will also support equipment procurement, working capital, and corporate purposes, alongside further development of operations and acquisition of intellectual property.

The Executive Chairman of IperionX, Todd Hannigan, has personally invested A$1.9 million by subscribing to 593,750 shares. His participation will occur in the second tranche, contingent upon shareholder approval at the forthcoming General Meeting. The shares’ issue price represents a 7.2% discount compared to the last trading price of A$3.45.

The company plans to split the issuance into two tranches: 30,656,250 shares will be distributed on October 25, 2024, following ASX Listing Rule 7.1, while the remainder will be allocated to Hannigan post-shareholder consent.

Petra Capital Pty Limited acted as the sole bookrunner and joint lead manager, alongside Bell Potter Securities Limited, managing the placement. The placement reflects IperionX’s ambition to expand its foothold in titanium and critical mineral resources, with a focus on enhancing U.S.-based advanced industries like aerospace, defense, and electric vehicles.

Expert Insight

According to an industry analyst, this strategic capital allocation reinforces IperionX’s long-term vision to dominate the titanium supply chain within the United States. The analyst emphasized that with increasing demand for critical minerals in advanced manufacturing, IperionX’s investment in expanding its Virginia operations aligns with broader industry trends, particularly in aerospace and defense.