Who have been this year’s top rainmakers in the small cap ECM markets?

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The announcement of a capital raise brings out various emotions in investors. Sometimes there’s excitement that a company can make its vision a reality. For others, there’s frustration that existing shareholders are being diluted as their company is forced to rattle the tin to keep the doors open.

But to one group in the markets, capital raises are always a good thing – the advisory firms that raise capital for them.

Stockhead has been running the numbers on which rainmakers have been performing well this year.  As of May 7, $944 million has been raised across 154 deals in small cap land comprising of IPOs, placements and rights issues. This time last year $1.6 billion had been raised across 162 deals.

The top performers

In 2019 the biggest deal-maker flying out the traps by capital raised has been broker Bell Potter. As of May 7, it has captured nearly 20 per cent of the market raising $195m across 13 deals. This time last year it had only raised $135 million, so it is fair to say 2019 has been a very busy year for Bell Potter.

Most of Bell Potter’s deals were placements. Its biggest deal was a $51.6 million placement for Paradigm Biopharmaceuticals (ASX: PAR), which was complemented with a $26.3 million rights issue.

Its only IPO was the $13m listing of wireless internet provider Uniti Wireless (ASX: UWL).

Retail broker Morgans held the second highest market share with $102.5 million, representing 11 per cent of the market. Among Morgan’s notable deals was a $22 million placement for Dubber Corp (ASX: DUB) and a $31 million rights issue and placement for Otto Energy (ASX: OEL).

Third on the list was Macquarie Bank, despite only doing two deals – Readytech (ASX: RDY) and Amaysim (AYS), both raising $50 million.

The broker that did the most deals was Hartleys, comprising mostly of micro cap mining companies.

Patersons was another high-volume deal maker although it did run the $35 million IPO of biotech Next Science (ASX: NXS).

The deal that has shaken the ASX was buy now pay later stock Splitit (ASX: SPT). That offer was completed by corporate advisory firm Armada Capital.

Armada’s only other deal this year was a $7 million placement for Ausmex Mining Group (ASX: AMG).

The biggest decliner in market share, compared to last year, was Shaw & Partners, which raised $128 million in the small cap market last year and was one of the biggest dealmakers. This year it has only done one deal – a $4 million placement for Spirit Telecom (ASX: ST1).

Perhaps Shaw has been distracted by the recent 51 per cent sale of their business to Swiss private banking group EFG International.

Here is a table of all ASX small cap equity capital market rainmakers and their year to date performance

Swipe or scroll to reveal the full table. Click headings to sort.

Source: Bloomberg

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