Chemical reaction: market darling Alpha HPA books investor roadshow
Meet the billion-dollar small cap that’s ridden the electric vehicle wave from $65 million four years ago. Now it’s set to launch a veritable schmooze-fest of local fund managers.
Street Talk understands Alpha HPA, a producer of higher value chemicals used in lithium-ion batteries and semiconductors, has drafted in Macquarie Capital to book meet-and-greets with small-cap investors this week.
Alpha expects its Queensland facility to produce 10,000 tonnes of high-purity alumina equivalent annually.
Alpha’s had an excellent year, with the shares rising 153 per cent over the past 12 months as investors search for exposure to the clean energy transition. At $1.14 per share, some brokers expect the company has more to run. Bell Potter’s Stuart Howe has a price target of $1.53 on Alpha securities.
The company told Street Talk that, despite the impromptu investor roadshow due to kick off on Wednesday, there were no immediate plans to raise additional capital – even with the surge in the company’s market capitalisation, which was sitting at around $1 billion on Tuesday.
The fund manager meetings, the company said, were only scheduled ahead of a Macquarie emerging leaders conference.
Nothing lights up the market like an impromptu investor roadshow, particularly when the company’s share price has been on a tear. But a capital raising is a question of when not if. Alpha has built the first stage of a Gladstone production facility – the first commercial application of its refining technology to produce high-quality aluminium products.
A major expansion is on the cards so that it can use the technology at scale. Alpha has told investors it expects the 10-hectare facility in Queensland to produce 10,000 tonnes of high-purity alumina
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