IPO Watch: Investors are choosing established stocks over new floats
IPO Watch
IPO Watch
It has been a slow start to the new fiscal year, with the list of planned IPOs thinning out.
There’s just seven companies on the ASX’s list of IPOs hoping to hit the boards this month and next.
According to the bourse’s market stats, initial capital raised in June fell nearly 12 per cent from the prior month, from $2.05 billion to $1.81 billion.
But the $5.37 billion in secondary capital raised in June is almost double May’s $2.79 billion. So clearly investors are still interested – just not so much in IPOs.
Here’s a (quite short) list of upcoming IPOs:
Scroll or swipe to reveal table. Click headings to sort.
Company | ASX code | IPO status | Focus | Fund raising | Issue price |
---|---|---|---|---|---|
AppsVillage Australia | APV | Due to list July 23 | Software-as-a-Service company | $6m | 20c |
Australian Nutrition & Sports | AN1 | Was due to list Apr 3; ASIC has issued an interim stop notice | Dairy formula | $5-$8m | 20c |
Nemex Resources | NXR | Due to list July 24 | Gold and base metals exploration | $5m | 20c |
QuickFee | QFE | Due to list July 11 | Payment platform and SME finance lender | $13.5m | 20c |
Sezzle | SZL | Offer closes July 12; Due to list July 30 | Payment platform | $43.6m | $1.22 |
Tartana Resources | TNA | Offer closes July 26; Due to list Aug 13 | Copper and zinc exploration | $6m | 20c |
Trigg Mining | TMG | Offer extended to July 12; Due to list July 24 | Potash | $4.5m | 20c |
Although there has been a declining number of IPOs, many of those that managed to get away have done quite nicely.
Over 64 per cent of this year’s new floats have ticked up between 2 and 476 per cent.
The most recent debutante, biotech play Invex Therapeutics (ASX:IXC), got off to a flying start last Friday.
The company, which is backed by billionaire mining magnate Andrew “Twiggy” Forrest, raised $12m at IPO via the issuance of 30m shares at 40c each. The stock commenced trading at 60c and closed on Friday at $1.075 — a healthy premium of 169 per cent to the listing price.
It has edged back slightly but is still trading at over $1, which should make investors that got in at the IPO very happy.
Wireless internet provider Uniti Wireless (ASX:UWL) has topped the list with a 476 per cent gain since it listed in February.
The company’s share price is trading around $1.44 at the moment.
Bacteria-killing biotech Next Science (ASX:NXS) is now around 4x its IPO price, trading at just under $4.
The company’s flagship product is its proprietary Xbio technology platform, which works to kill biofilms — protective shields formed by bacteria that makes them harder to kill.
Despite the regulatory hurdles, pot stocks are still in vogue it seems, with the ASX’s first cannabis IPO of 2019, Ecofibre (ASX:EOF), rallying ~200 per cent to nearly $3 since its March listing.
Last week Ecofibre was quizzed by the ASX about its share price jump, but the company put it down to its impending FY19 results confirming Ecofibre’s “market leading position” in the US independent pharmacy market.
In the US, the company produces nutraceutical products for human and pet consumption, as well as topical creams and salves.
Here’s a performance rundown of this year’s ASX entrants:
Scroll or swipe to reveal table. Click headings to sort.
Listing Date | ASX Code | Company | IPO Price | Price July 9 (Intraday) | % Return |
---|---|---|---|---|---|
01/29/2019 | SPT | Splitit Payments | 0.2 | 0.505 | 1.525 |
02/13/2019 | UWL | Uniti Wireless | 0.25 | 1.44 | 4.76 |
02/14/2019 | A1G | African Gold | 0.2 | 0.16 | -0.2 |
02/19/2019 | CLB | Candy Club Holdings | 0.2 | 0.075 | -0.625 |
02/22/2019 | MPH | Mediland Pharm | 0.2 | 0.32 | 0.6 |
03/07/2019 | CBY | Canterbury Resources | 0.3 | 0.29 | -0.0333333333333 |
03/29/2019 | EOF | Ecofibre | 1 | 2.99 | 1.99 |
04/17/2019 | RDY | Readytech Holdings | 1.51 | 1.56 | 0.0331125827815 |
04/18/2019 | NXS | Next Science | 1 | 4 | 3 |
04/29/2019 | MOT | MCP Income Opportunities Trust | 2 | 2.05 | 0.025 |
04/30/2019 | PE1 | Pengana Private Equity Trust | 1.25 | 1.415 | 0.132 |
05/07/2019 | MRZ | Mont Royal Resources | 0.2 | 0.26 | 0.3 |
05/10/2019 | 360 | Life360 Inc | 4.79 | 3.89 | -0.187891440501 |
05/14/2019 | PCI | Perpetual Credit Income Trust | 1.1 | 1.13 | 0.0272727272727 |
05/23/2019 | PWL | Powerwrap | 0.35 | 0.27 | -0.228571428571 |
05/24/2019 | TIP | Teaminvest Private Group | 1 | 0.89 | -0.11 |
05/28/2019 | IAP | Investec Australia Property Fund | 1.32 | 1.47 | 0.113636363636 |
06/06/2019 | PKS | PKS Holdings | 0.2 | 0.18 | -0.1 |
06/06/2019 | RLT | Renergen | 0.8 | 0.85 | 0.0625 |
06/07/2019 | VVA | Viva Leisure | 1 | 0.95 | -0.05 |
06/11/2019 | PGL | Prospa Group | 3.78 | 3.73 | -0.0132275132275 |
06/12/2019 | PBH | PointsBet Holdings | 2 | 2.78 | 0.39 |
06/14/2019 | VOL | Victory Offices | 2 | 2.2 | 0.1 |
06/14/2019 | 2BE | Tubi | 0.2 | 0.35 | 0.75 |
06/17/2019 | RF1 | Regal Investment Fund | 2.5 | 2.55 | 0.02 |
06/19/2019 | WSP | Whispir | 1.6 | 1.485 | -0.071875 |
06/21/2019 | VGI | VGI Partners | 5.5 | 12.31 | 1.23818181818 |
07/05/2019 | IXC | Invex Therapeutics | 0.4 | 1.02 | 1.55 |