IPO Watch: 2020 is off to a strong start as a number of mining explorers prepare to list
January is typically a quieter month for deal-flow in Australian markets.
But since January 16 there’s still been three new IPOs, and as at close of trade yesterday none of them had face-planted since joining the ASX boards. Incredible.
Leading the pack was Cosol (ASX:COS), which raised $12m from investors at 20 cents a pop and listed on Friday.
The IT provider offers software services to mining companies and energy utilities, to help customers run their capital-intensive assets more efficiently.
Cosol is looking to continue to trend of outperformance among listed Australian tech companies, as the ASX makes a concerted pivot to foster more activity in the sector.
Also listing last week was Happy Valley Nutrition (ASX:HVM), which operates in another sector closely watched by investors; infant-formula nutrition.
The stock fell to 13 cents on debut last Thursday — a sharp decline from its 20-cent listing price.
But in what’s been a fairly volatile start to listed life, the company clawed back gains before jumping by around 30 per cent yesterday as markets returned from holiday.
HVM said it plans to operate a B2B commercial model, with product derived from its commercial plant based in New Zealand’s Waikato region.
And kicking off the year on January 16 was biotech stock Nyrada (ASX:NYR), which raised $8.5m from investors — also at 20 cents.
The US-based company is primarily focused on the development of two drugs — a cholesterol-lowering pill for people who don’t respond to statin medications, and a treatment for stroke and traumatic brain injury.
By close of trade yesterday the stock had climbed to 25 cents, for an early gain of 25 per cent. Here’s a chart performance summary of the three stocks to-date:
Looking ahead, another 11 companies have announced plans to list in the not-too-distant future.
Of those, more than half (six) ply their trade in mineral exploration, with the bulk of those in gold and precious metals exploration.
Here’s a list of upcoming IPOs:
Scroll or swipe to reveal table. Click headings to sort.
|Expected listing date
|Fund raising ($M)
|IT/software (financial services)
|Little Green Pharma
|Mineral explorer - gold and base metals
|Residential property developer
|Cloud-based transaction software