Frontier Rare Earths Ltd., went public this week but overall market sentiment weighed on the company's initial public offering (IPO), sending the stock from its IPO price of CA$3.40 to as low as CA$3.05 before closing at CA$3.12 on the Toronto Stock Exchange (TSE). Frontier Rare Earths is a developer of rare earth minerals in South Africa. The IPO went public Wednesday, raising about $59 million (CA$60 million), according to Bloomberg News.

The company is looking to become a top producer of strategic metals, along with Molycorp Inc., based in the U.S. and Australian mining company Lynas Corporation. On Monday, Colorado-based Molycorp reported a quadrupling in revenues in response to rising demand and reduced export quotas imposed by China. The company reported a loss of 14 cents per share, a four-cent improvement over the same quarter last year. Molycorp went public in July at $14 a share. The stock price has more than doubled since.