Stock of the day: VBX
VBX has debuted on the Australian Securities Exchange, raising $10 million in a tightly held float. Backed by institutional investors, the bauxite developer is generating early interest as it aims to meet Chinese aluminium demand by 2026.
(AI video summary)
This video was created on 17 June 2025 for IG audiences by ausbiz.
ASX code: VBX
Strong institutional backing boosts VBX's ASX debut
VBX Limited has made its debut on the Australian Securities Exchange (ASX) following a $10 million initial public offering (IPO) priced at $0.60 per share.
The company has garnered strong backing from institutional investors, including Deutsche Balaton, Lowell Resources Fund, and Terra Capital. Notably, around 50% of VBX's shares are held by insiders and long-term investors, indicating solid internal confidence in the project.
Risk-free bauxite production
VBX aims to commercialise its bauxite asset and bring it into production by the end of financial year (FY) 2026. This is considered ambitious due to the project's early development stage.
The company's location in Western Australia offers access to quality, Guinea-style bauxite ore without the associated sovereign risks, providing a strategic advantage.
Investment outlook
Analysts found the IPO's pricing attractive, with the stock opening slightly higher on its debut. Some experts view the shares as good value at current levels, predicting a potential price increase to $1 per share. However, they caution investors to consider several factors:
- What will be the most significant development hurdles?
- How realistic are the timeframes for securing permits and completing feasibility studies?
- What will be the critical catalysts and risks over the next 24 months?
While the company's prospects appear promising, some analysts prefer to steer clear of early-stage resource stocks. They note that commodity price fluctuations often overshadow project milestones in affecting the performance of small-capitalisation (small-cap) mining shares.
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