Metal Powder Works (ASX: MPW)

Metal Powder Works (ASX: MPW) shows how we lead with conviction in a quality technology company at the forefront of new macro thematics (additive manufacturing, defence and aerospace, US anchoring) to unlock value on the ASX.

We have worked in the US’s push to onshore critical manufacturing capabilities, and we’re familiar with the technologies underpinning that. We were also aware of value potential of this thematic on the ASX with a set of listed companies trading strongly including: IPX.AX, 3DA.AX, TTT.AX and AL3.AX.

The Opportunity: Identifying Value

We have known MPW since the start of decade. It was an unlisted US-based company with proprietary technology (some originally from CSIRO) in the high-growth additive manufacturing sector.

MPW had developed the first major innovation in metal powder production in over 50 years. As a private company (also with some convertible note overhang issues) it was inaccessible to public market investors.

The Strategy: Creating a Public Market Vehicle

We had also known K-TIG (ASX: KTG) for many years. As an Australian company with welding technology, suspended from ASX due to corporate restructure, it was the ideal merger partner to bring MPW to the ASX. 

As corporate advisor and merchant capital partner, we:

• Identified the suitable reverse merger target
• Facilitated and negotiated the merger agreements and convertible note restructures
• Advised on the capital strategy and introduced Morgans Corporate as Lead Manager for the subsequent $10 million RTO capital raising
• Invested in the pre-merger convertible note round and again in the RTO alongside our network

The Outcome: A Win-Win for All Stakeholders

The company, renamed Metal Powder Works (ASX: MPW), successfully re-listed on the ASX in March 2025 at an issue price of $0.20.

The stock closed its first day at $0.37. Within six months it traded up to a high of $4.55, a 22x return for those who invested at the IPO price. The company since raised a further $15 million at $3.50 to scale production and accelerate sales.

Now, we don’t expect every opportunity to deliver a 22x return in six months…
But it’s a powerful exemplar of our global networks and knowledge base. We are proud to see what can happen when our core investment criteria are met:

• Strong macro tailwinds: push for sovereign manufacturing
• Excellent management teams: CEO was known to Powerhouse with 30+ years Honeywell, Lockheed Martin Skunk Works and CSIRO
• Asymmetric upside potential: undervalued compared with its ASX-listed peer set
• Clearly defined re-rating catalysts: ASX re-listing and capital to unlock key milestones