Investors are showing strong belief in the small cap sector with the majority of IPOs in the first half of the year hitting 100 per cent of their fund raising targets.

While the number of ASX initial public offerings in the first half was down to 39 from 57 last year, there was still plenty of activity in the small caps space with 31 new companies coming onto the bourse between January and July, reports business advisory HLB Mann Judd.

Of those floats, the majority were able to easily raise 100 per cent of their cash targets, the firm says.

Businesses looking to raise between $24 million and $50 million struggled slightly more than other raise targets, but only slightly – with companies hitting their IPO targets 93 per cent of the time.

It remains a challenge for everyday investors to invest in IPOs, however, as we report elsewhere today.

>> Scroll down for a table showing how 83 ASX floats have performed in the past year

Here are three reasons for the current strength of small cap floats:

Miners continue to drive listings 

The materials sector accounted for 16 of the 39 new entrants to the ASX so far this year.

Fourteen of these companies were small caps, which raised a total of $92 million to list on the ASX. However, thats’ half the number of small cap miners that listed in the same period last year, then raising $300 million.

Smaller software companies find the ASX

Six software and services companies hit the boards in the first six months of the year, having raised $113 million. Every tech play was able to hit its fund raising targets, HLB Mann Judd reported.

Small caps hit their targets more frequently across all sectors 

Overall a total of 39 companies raised $2.5 billion in the first half. On average, the local market raised 88 per cent of the funds they sought from investors, while small cap companies raised 98 per cent of their required capital, on average.

“This indicates strong support by investors for small cap companies, and we have seen a considerable number of small cap entrants to the market in 2018,” HLB Mann Judd partner Marcus Ohm said.

IPO raise doesn’t guarantee performance

However, hitting your IPO cash target doesn’t guarantee share price gains after the bell rings.

Some, like waste water treatment business Calix (ASX:CXL), have seen immediate share price gains. The business raised $8 million issuing shares at 53c each and while it’s only been on the boards three days, the share price is sitting up more than 50 per cent at 83c.

Meanwhile, drone parachute maker Parazero (ASX:PZO) is down 12.5 per cent on its offer price of 20c, sitting at 17.5c on Tuesday.

On the whole, companies that listed last year were more likely to be down 12 months later than ahead. As the following table shows, of the 83 companies that listed last year, 37 came out ahead.

For those that have flown, though, the gains have been significant: top performer and business software play Cape Range (ASX:CAG) is up 475 per cent on its IPO, sitting at $1.10 this week.

Cape Range’s shares have soared this month — though it’s told the ASX it doesn’t know why.

Here’s a table showing how 83 ASX floats have performed in the past year:

Scroll or swipe to reveal full table. Click on headings to sort

ASX code Company Price change since IPO Price Jul 24 (intraday) IPO price Market cap Listing date Raised Focus
CAG CAPE RANGE 4.75 1.15 0.2 $100.4m Nov 2017 $5.6m Fintech
TNO TANDO RESOURCES 2.83720930233 0.165 0.043 $26.6m Nov 2017 $4.5m Resources - vanadium, copper, zinc
AU8 AUMAKE 2.3125 0.265 0.08 $68.9m Oct 2017 $6m China-focused retailer
RCL READCLOUD 1.6 0.52 0.2 $44.0m Feb 2018 $6m Tech - education
ADT ADRIATIC METALS 1.25 0.45 0.2 $61.5m Apr 2018 $10m Resources - lead, silver, copper, gold
5GN 5G NETWORKS 1.2 0.55 0.25 $26.1m Nov 2017 $4m Tech - broadband
EM2 EAGLE MOUNTAIN 0.9 0.38 0.2 $35.2m Mar 2018 $8m Resources - copper
MRL MAYUR RES 0.875 0.75 0.4 $111.8m Sep 2017 $15.5m Resources - mineral sands
S66 STAR COMBO PHARMA 0.8 0.9 0.5 $72.5m May 2018 $5.8m Health - vitamins
GAL GALILEO MINING 0.8 0.36 0.2 $40.9m May 2018 $15m Resources - cobalt, nickel
KTD KEYTONE DAIRY 0.7 0.34 0.2 $53.3m Jul 2018 $15m Dairy
PPE PEOPLE INFRASTRUCTURE 0.65 1.65 1 $106.0m Nov 2017 $25m Workforce management
CPV CLEARVUE TECH 0.6 0.32 0.2 $32.8m May 2018 $5m Tech - power-generating glass
ROO ROOTS SUSTAINABLE 0.6 0.32 0.2 $20.5m Dec 2017 $5m AgTech
CXL CALIX 0.566037735849 0.83 0.53 $100.6m Jul 2018 $8m Water treatment
SP3 SPECTUR 0.525 0.305 0.2 $14.7m Aug 2017 $4.5m Tech - security cameras
EXL ELIXINOL GLOBAL 0.5 1.5 1 $153.4m Jan 2018 $20m Cannabis
PYG PAYGROUP 0.45 0.725 0.5 $37.5m May 2018 $8.5m Tech - finance
OKR OKAPI RESOURCES 0.425 0.285 0.2 $9.6m Sep 2017 $5m Resources - gold
PVS PIVOTAL SYSTEMS 0.424731182796 2.65 1.86 $293.0m Jul 2018 $53.5m Computer chip software
CWX CARAWINE RES 0.4 0.28 0.2 $15.9m Dec 2018 $7m Resources - copper, gold
RCW RIGHTCROWD 0.366666666667 0.41 0.3 $54.7m Sep 2017 $10m Tech - cyber security
IXU IXUP 0.325 0.265 0.2 $41.2m Nov 2017 $12.5m Tech - Collaboration software
KRX KOPPAR RESOURCES 0.325 0.265 0.2 $8.7m May 2018 $4.5m Resources - copper, zinc
TGO TRIMANTIUM 0.28 1.28 1 $121.4m Mar 2018 $70m Marketing
JLG JOHNS LYNG GROUP 0.25 1.25 1 $276.4m Oct 2017 $96m Builder
BC8 BLACK CAT 0.25 0.25 0.2 $13.7m Jan 2018 $6m Resources - gold
ABR AMERICAN PACIFIC 0.2 0.24 0.2 $41.7m Jul 2017 $15m Resources - lithium
NTD NATIONAL TYRE 0.185 1.185 1 $119.7m Dec 2017 $59m Auto - tyre and wheel seller
DXN DATA EXCHANGE 0.175 0.235 0.2 $42.8m Apr 2018 $16m Tech - cloud computing
TAO TAO COMMODITIES 0.15 0.23 0.2 $5.3m Apr 2018 $4.75m Resources - zinc, gold
TIN TNT MINES 0.15 0.23 0.2 $6.4m Nov 2017 $5.5m Resources - tungsten
PFP PROPEL FUNERAL 0.12962962963 3.05 2.7 $294.5m Nov 2017 $131.2m Funeral services
DBF DUXTON BROADACRE 0.04 1.56 1.5 $67.6m Feb 2018 $21.1m Grain industry
B2Y BOUNTY MINING 0.0285714285714 0.36 0.35 $145.5m Jun 2018 $18m Resources - coking coal
N27 NORTHERN COBALT 0.025 0.205 0.2 $9.4m Sep 2017 $4.2m Resources - cobalt
PGX PRIMERO GROUP 0.025 0.41 0.4 $60.5m Jul 2018 $25m Engineering
BAH BOJUN AGRICULTURE 0 0.3 0.3 $36.5m Dec 2017 $7.7m Beverages
RHY RHYTHM BIOSCIENCES 0 0.2 0.2 $20.2m Dec 2017 $9m Health - cancer diagnostics
STN SATURN METALS 0 0.2 0.2 $11.2m Mar 2018 $7m Resources - gold
VEA VIVA ENERGY 0 2.5 2.5 $4.9B Jul 2018 $2.6bn Energy
NES NELSON RESOURCES -0.025 0.195 0.2 $9.4m Dec 2017 $5m Resources - gold
A1C AIC RESOURCES -0.05 0.19 0.2 $14.3m Nov 2017 $10m Resources - gold
JAY JAYRIDE GROUP -0.06 0.47 0.5 $35.5m Jan 2018 $1.5m Tech - share-ride
SIL SMILES INCLUSIVE -0.07 0.93 1 $52.4m Apr 2018 $35m Health - dental chain
CP1 CANNPAL ANIMAL -0.075 0.185 0.2 $17.2m Oct 2017 $6m Cannabis
MKG MAKO GOLD -0.075 0.185 0.2 $12.0m Apr 2018 $6m Resources - gold
MMM MARLEY SPOON -0.09154929577460001 1.29 1.42 $149m Jul 2, 2018 $70m Dinner delivery
PKD PARKD -0.1 0.18 0.2 $13.5m Dec 6, 2017 $6m Construction - car parks
PRZ PARAZERO -0.125 0.175 0.2 $15.4m Jun 18, 2018 $5m Tech - drones
P2P P2P TRANSPORT -0.136363636364 1.14 1.32 $89.7m Dec 13, 2017 $29.2m Fleet mangement
IHR INTELLIHR -0.15 0.255 0.3 $26.5m Jan 23, 2018 $4.5m Tech - HR
G1A GALENA MINING -0.15 0.17 0.2 $55.5m Sep 7, 2017 $6m Resources - base metals
SCT SCOUT SECURITY -0.15 0.17 0.2 $17.3m Aug 25, 2017 $5m Tech - home security
WOA WIDE OPEN AGRICULTURE -0.15 0.17 0.2 $12.0m Jul 6, 2018 $5m AgTech
GAS STATE GAS -0.175 0.165 0.2 $21.6m Oct 10, 2017 $5.2m Resources - gas
WND WINDLAB -0.1975 1.605 2 $107.9m Aug 23, 2017 $50m Energy - wind farmer
AS1 ANGEL SEAFOOD -0.2 0.16 0.2 $20.1m Feb 21, 2018 $8m Seafood
SIS SIMBLE SOLUTIONS -0.2 0.16 0.2 $14.4m Feb 22, 2018 $7.5m Tech - Internet of Things
BGT BIO-GENE TECH -0.25 0.15 0.2 $19.2m Nov 29, 2017 $7.1m Health - bug killer
BEM BLACKEARTH -0.275 0.145 0.2 $8.5m Jan 2018) $5.4m Resources - graphite
AX8 ACCELERATE RES -0.3 0.14 0.2 $6.4m Feb 14, 2018 $5m Resources - cobalt gold, copper
LRM LUSTRUM MINERALS -0.3 0.14 0.2 $5.6m Nov 15, 2017 $5m Resources - coal
RGL RIVERSGOLD -0.3 0.14 0.2 $13.3m Oct 10, 2017 $6.1m Resources - gold
NC6 NANOLLOSE -0.325 0.135 0.2 $10.1m Oct 16, 2017 $5m Tech - plant-free fibre
CRD CREDIBLE LABS -0.330578512397 0.81 1.21 $202.6m Dec 8, 2017 $67m Online loans
OGA OCEAN GROWN ABALONE -0.34 0.165 0.25 $28.7m Nov 14, 2017 $10m Seafood
CG1 CARBONXT GROUP -0.392857142857 0.425 0.7 $33.1m Jan 23, 2018 $10m CleanTech
BYH BRYAH RESOURCES -0.4 0.12 0.2 $6.8m Oct 17, 2017 $5m Resources - copper, gold, manganese
CCG COMMSCHOICE -0.42 0.145 0.25 $15.8m Dec 21, 2017 $7.5m IT services
SWF SELFWEALTH -0.425 0.115 0.2 $13.6m Nov 23, 2017 $7.3m Broker
RZI RAIZ INVEST -0.438888888889 1.01 1.8 $61.6m Jun 21, 2018 $15.1m Microinvesting
TIE TIETTO MINERALS -0.45 0.11 0.2 $23.9m Jan 18, 2018 $6m Resources - gold
GO2 GO2 PEOPLE -0.475 0.105 0.2 $12.4m Oct 31, 2017 $10m Tech - HR
EN1 ENGAGE:BDR -0.5 0.1 0.2 $26.4m Dec 14, 2017 $10m Marketing
NUS NUSANTARA RESOURES -0.535714285714 0.195 0.42 $24.6m Aug 2, 2017 $16.2m Resources - gold
CY5 CYGNUS GOLD -0.54 0.092 0.2 $6.4m Jan 15, 2018 $6m Resources - gold
POD PODIUM MINERALS -0.625 0.075 0.2 $7.2m Feb 28, 2018 $5.5m Resources - Platinum metals
SDX SIENNA CANCER -0.64 0.072 0.2 $13.0m Aug 3, 2017 $4.6m Health - cancer
FDX FRONTIER DIAMOND -0.67 0.066 0.2 $13.3m Jan 5, 2018 $4m Resources - diamond
WHK WHITEHAWK -0.7 0.06 0.2 $4.4m Jan 24, 2018 $4.5m Tech - cyber security
CLI CROPLOGIC -0.775 0.045 0.2 $5.5m Sep 12, 2017 $8m AgTech
RD1 REGISTRY DIRECT -0.92 0.016 0.2 $1.5m Nov 1, 2017 $2m Tech - Company registry