Mineral drilling firm DDH1 has commenced trading on the Australian Securities Exchange. 

DDH1 last week completed an Initial Public Offering (IPO) that secured gross proceeds of $150 million through the issue of about 40 per cent of DDH1’s shares.

Managing director and chief executive officer Sy Van Dyk said demand was growing in the Australian mineral drilling sector for DDH1’s services because of increased exploration, development and production spending.

“As an ASX-listed company with a strong balance sheet, a committed shareholder base, a disciplined approach to growth and access to capital markets, DDH1 is well positioned to pursue its growth strategy,” he said.

The company was established in Perth in 2006.

DDH1 said IPO proceeds were used to allow existing shareholders to realise part of their investment in the company and to repay company borrowings.

The 136,363,636 shares in the IPO went to new investors at $1.10 per share.