IPO Watch: 2019’s debutantes gained $2.7b in value – a 69pc jump; & share prices have jumped 56pc
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After a quiet start to 2019, the IPO market has begun to boom. There have been 24 ASX IPOs and they have collectively gained 56 per cent on a percentage return basis.
Collectively their market caps at IPO were $3.9 billion but now they stand at $6.6 billion – representing $2.7 billion in value created and a jump of 69 per cent.
The solid year for IPOs is stunning considering the slow start to the market. Only one IPO occurred in January and only another three in February. Even as the market gradually picked up, it was dominated by fintech Splitit (ASX: SPT) which surged as high as $2.
But while profit takers and a capital raise have dislodged Splitit from the top, a series listings in June and the blooming of Next Science (ASX: NXS) and Uniti Wireless (ASX: UWL) have strengthened and diversified the market.
Uniti Wireless (ASX: UWL) wants to be an alternative to the NBN. It is up 516 per cent this year and if you’d invested $951,560.92, like Vaughan Bowen did, you’d have several million dollars – $3.7 million to be exact as of this morning.
Uniti’s offer was led by Bell Potter which has been the top rainmaker in the small cap markets.
Next Science (ASX: NXS) is a bacteria-fighting biotech that produces products from acne gel administered at home to sterile lavage used in surgery. After being founded in 2012, it listed in April at $1 per share and now sits at $4.
Despite the slump in recent weeks, Splitit is still well up on its IPO price. At 66 cents, it has gained 230 per cent.
Two other IPOs have gained over 100 per cent – pot stock Ecofibre (ASX: EOF) and financial firm VGI Partners (ASX: VGI).
However, 2019 has still been a quiet year for mining stocks. Only three stocks have listed this year and only one is up.
WA focused gold explorer Mont Royal Resources (ASX: MRZ) hit the board in May and subsequently has gained 23 per cent. The catalyst has been survey results which have confirmed recently defined targets could be on the right path.
Two companies listed earlier, Canterbury Resources (ASX: CBY) and African Gold (ASX: A1G) and they have lost 17 per cent and 25 per cent respectively.
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Date Code Issuer Name Offer Size ($M) Offer Price Price (25 June) Offer To Date (%) Industry Sector 13-Feb UWL Uniti Wireless Ltd 9.5 0.25 1.54 516 Technology 18-Apr NXS Next Science Ltd 24.6 1 4 300 Health 29-Jan SPT Splitit Payments Ltd 8.6 0.2 0.66 230 Technology 29-Mar EOF Ecofibre Ltd 14.1 1 2.05 105 Consumer 21-Jun VGI VGI Partners Ltd 52.1 5.5 11.2 104 Financial 22-Feb MPH Mediland Pharm Ltd 9.1 0.2 0.32 55 Consumer 14-Jun 2BE Tubi Pty Ltd 4.0 0.2 0.31 50 Industrial 12-Jun PBH PointsBet Holdings Ltd 51.8 2 2.4 26 Consumer 7-May MRZ Mont Royal Resources Ltd 3.5 0.2 0.26 22 Mining 14-Jun VOL Victory Offices Ltd 20.7 2 2.24 15 Financial 28-May IAP Investec Australia Property Fund 71.3 1.32 1.46 10 Financial 17-Apr RDY Readytech Holdings Ltd 35.5 1.51 1.57 4 Technology 29-Apr MOT MCP Income Opportunities Trust 215.2 2 2.05 4 Financial 14-May PCI Perpetual Credit Income Trust 310.1 1.1 1.125 2 Financial 30-Apr PE1 Pengana Private Equity Trust 112.4 1.25 1.25 1 Financial 17-Jun RF1 Regal Investment Fund 200.9 2.5 2.48 -1 Financial 7-Mar CBY Canterbury Resources Ltd 4.4 0.3 0.25 -17 Mining 11-Jun PGL Prospa Group Ltd 83.1 3.78 3.63 -4 Financial 7-Jun VVA Viva Leisure Ltd 14.0 1 0.9 -6 Consumer 6-Jun PKS PKS Holdings Ltd 11.6 0.2 0.195 -8 Technology 19-Jun WSP Whispir Ltd 32.6 1.6 1.52 -8 Technology 23-May PWL Powerwrap Ltd 12.5 0.35 0.3 -14 Financial 10-May 360 Life360 3.9 4.79 3.9 -19 Technology 14-Feb A1G African Gold Ltd 3.3 0.2 0.155 -25 Mining
There will be at least four IPOs in the next month. Potash play Trigg Mining (ASX: TMG) will list on Friday and professional fee financier QuickFree (ASX: QFE) next Wednesday (July 3).
Later in the month gold miner Nemex Resources (ASX: NXR) and Software as a Service stock Apps Village (ASX: APV) will follow.
An earlier version of this story listed the 56 per cent return without specific context and the gain in their collective market capitalisations, which suggested an incorrect calculation. The 56 per cent figure alluded to the average percentage gain of the share prices rather than the gains in their market capitalisation – which is indeed 69 per cent.