Majestic Gold Corp. V.MJS

The public part of an IPO (ChatGPT)

[rbg3006]

Roadshow: The roadshow is a crucial component of the IPO process where company representatives, underwriters, and investment bankers present the investment opportunity to potential investors. The roadshow typically lasts for 1-3 weeks, during which the company meets with institutional investors, fund managers, and other interested parties to pitch the IPO.

Pricing and Allocation: After the roadshow, the underwriters work with the company to determine the IPO price and allocate shares to investors. This process may take a few days to a week.

Trading Debut: The IPO shares become publicly available for trading on the stock exchange. The first day of trading is usually a significant event and can generate additional media coverage and investor interest.

This also takes some time until the first day of trading.
The question arises as to where the advertising takes place (China, Hong Kong and Canada?). Doubts remain as to whether something rubs off on Majestic.

[nozzpack]

You must remember that the IPO of Persistence is a dual event. Its inorganic growth and daily operations will become a quasi PRC operation while Majestic, still holding its majority position in Persistence will be free to become a sole focus Western E &D company  Overlaps in CFO will ensure efficient hybrid operations . Majestic will expand its BOD and list  on the TSE. Strong

[Santa12]

....  And what if only Persistance paid a dividend and MJG invested its profits in new projects?

[rbg3006]

I sent my post related to the discussion over the past few days around the timing of the IPO. Everyone on this board seems to think Persistence can easily raise US$80m, although no one knows the company. You can see with Majestic that the price is falling despite the good prospects and there is almost no trading volume.  

[DetVicMackey]

@rbg3006 See my post on Aura Minerals as a comparable IPO example and look at its price chart back from the period of March 2020 to September 2020. It initially went up at the prospect of a Brazilian IPO and then pulled back after a brief delay due to the uncertainty of COVID. Demand was so strong that it was not put on ice for too long and led to a five bagger, all during a pandemic. MJS has the

[rbg3006]

@DetVicMackey: There are an analyst coverage of 9 analysts at Auro Minerals. Majestic and/or Persistence has no analyst coverage. I don't know how popular Aura Minearls was at the time of their IPO.

[DetVicMackey]

@rbg3006 I don't recall Aura Minerals having much analyst coverage, if any at all back then. There were just 4.35 million pre-split 15-for-1 common shares with a 50+% majority owner so the public float was extremely thin. A typical trading day had volumes of roughly 1,000 shares but got up to 9,000 shares after plans for its IPO. Even today, it's fairly illiquid and not widely followed

[nozzpack]

The listing itself and the IPO price relative to MJS price will give a great lift to MJS price due to rercognition that it will own about 57 m of the 80 m post IPO consoldiated shares of Persistence. These calculations have been presented before assuming the stated ( March 2022 ) conditions of the IPO....not more than 25 % dilution, raising $105 m CAD , ending up with 80 m post IPO consoidated

[nozzpack]

This is not unique to Majestic as I own another small cap gold. Volumes are almost non existent and liquidity almost non existent. Also demand for gold in China far outstrips Chinese gold production. I doubt, with their long period of operating in China, that they are so ignorant of Chinese  investment demand, that they would submit a IPO prospectus that would make or break their listing