Rare Earths Americas seeks $368M IPO valuation

Rare Earths Americas said on Tuesday is targeting a valuation of up to $368.4 million in its initial public offering in the United States, banking on investor demand for critical minerals used in products from electric vehicles to smartphones.

The exploration-stage company plans to sell about 2.78 million shares priced between $17 and $19 each, raising as much as $52.8 million, with an option for underwriters to purchase up to an additional 0.4 million shares.

Rare Earths Americas is advancing a portfolio of high-grade heavy rare earth projects in the US and Brazil, including three core assets it says could position the company as a key non-Chinese supplier.

The company said its projects align with Western industrial and national security priorities as governments seek to reduce reliance on China’s dominance in the sector.

REA plans to use proceeds from the offering to fund land acquisition, drilling, metallurgical testing and permitting at its Shiloh Project, as well as exploration, engineering and permitting work at its Alpha and Constellation projects. Additional funds may support earlier-stage assets, including Homer and Liberty Peak, along with working capital.

After the IPO, Rare Earths Americas is expected to trade on NYSE American under the ticker ‘REA’. Cantor is acting as lead book-running manager, with Stifel as joint book-runner and Canaccord Genuity and B. Riley Securities as co-managers.

The offering remains subject to regulatory approval, with the registration statement not yet effective.