Cobalt Blue Holdings Ltd. said Jan. 25 that its IPO closed successfully after investors applied for more than the A$10 million maximum of the offering in the wake of cobalt prices spiking by more than 60% in the last 12 months to US$36,000 per tonne.

The IPO opened Nov. 11 with a minimum subscription of 40 million shares to raise A$8 million.

Interest in the Cobalt Blue IPO increased with cobalt spot pricing on the London Metal Exchange rising to a five-year high as a result of increased demand for alloys and lithium ion batteries.

The company will issue 50 million new shares at 20 cents apiece, with 35 million shares to be distributed to shareholders of parent company Broken Hill Prospecting Ltd., with one loyalty option for every four shares issued.

"We anticipated strong support thanks to the strength of our cobalt assets and management at a time when demand and pricing is strong," said Cobalt Blue chairman Robert Biancardi, noting its flagship Thackaringa cobalt joint venture with Broken Hill in New South Wales.

Cobalt Blue expects to list on the ASX Jan. 31 under the ticker COB, as outlined in late 2016. The company had originally aimed to list on the ASX in December 2016 but was delayed by queries from the bourse.