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IPO Watch: It’s been an unpredictable ride for newbies so far in 2020
IPO Watch
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Mirroring the wider market, many of the small cap IPOs completed so far in 2020 have white-knuckled their way through the opening months of the new decade.
Only two – COSOL and Cobre – made solid gains. The rest bounced around like a House of Pain moshpit.
Software platform Cosol (ASX:COS), which raised $12m at 20c a share on January 23, is currently up 68 per cent to 33.5c per share.
Base metals explorer Cobre (ASX:CBE) wowed investors on its first day of listed life, January 31, with shares jumping as much as 32.5 per cent to a high of 26.5c.
The stock is currently up 40 per cent to 28c per share.
The losers column is spearheaded by pot stock Emerald Clinics (ASX:EMD), which dropped 30 per cent in its first hours on the ASX.
It is currently down 35 per cent since listing, as a general malaise impacts cannabis stocks.
Fellow pot stock Little Green Pharma (ASX:LGP) also tumbled ~30 per cent on its February 20 debut.
It has since clawed back some of those early losses and is currently down just 9 per cent on its IPO price of 45c per share.
Infant formula company Happy Valley Nutrition (ASX:HVM) is another stock riding some early volatility. The small cap fell to 13c on it January debut— a sharp decline from its 20c listing price – before making a bouncy recovery.
It currently sits at ~19c per share.
Noxopharm (ASX:NOX) spin-off Nyrada (ASX:NYR) went the other way – opening its first session mid-January 52.5 per cent higher than its 20c IPO price, hitting an early peak of 30.5c.
The drug maker has softened since then and is currently 10 per cent down on its IPO price at 18c per share.
Here’s a performance rundown of this year’s ASX entrants:
| LISTING DATE | TICKER | NAME | OFFER SIZE $ [millions] | OFFER PRICE | LAST CLOSE | RETURN TO DATE % |
|---|---|---|---|---|---|---|
| 01/24/2020 | COS | COSOL | 12 | 0.2 | 0.335 | 68 |
| 01/31/2020 | CBE | Cobre | 10 | 0.2 | 0.28 | 40 |
| 01/23/2020 | HVM | Happy Valley Nutrition | 13 | 0.2 | 0.19 | -5 |
| 02/14/2020 | TDY | Thedocyard | 4 | 0.2 | 0.185 | -8 |
| 02/20/2020 | LGP | Little Green Pharma | 10 | 0.45 | 0.41 | -9 |
| 02/12/2020 | EMD | Emerald Clinics | 6 | 0.2 | 0.13 | -35 |
| 02/14/2020 | CST | Castille Resources | 20 | 0.2 | 0.19 | -5 |
| 01/16/2020 | NYR | Nyrada | 9 | 0.2 | 0.18 | -10 |
UPCOMING IPOs
According to the ASX, a few players have pulled the pin in their listing aspirations, like Tassie-based pot stock 13 Seeds and high profile copper explorer Virgo Resources.
A listing for copper-zinc play Tartana Resources is also ‘TBA’ right now.
Here’s a list of upcoming IPOs:
| LISTING DATE | TICKER | NAME | MARKET CAP ON LISTING $[millions] | OFFER SIZE $ [millions] | OFFER PRICE |
|---|---|---|---|---|---|
| 02/26/2020 | AR1 | ARMnet | 28.4994 | 11 | 0.2 |
| 03/26/2020 | AL3 | AML3D | 26.4732 | 9 | 0.2 |
| TBA | MHK | Metal Hawk | 8.492 | 5.5 | 0.2 |
| 02/27/2020 | KAU | Kaiser Reef | 6.69 | 4.5 | 0.2 |
Still set to join the bourse later this month is IT platform ARMnet (ASX:AR1), which aims to raise $11m from investors at 20c per share, giving it a valuation of around $30m.
READ: It’s out with the old, in with the new as ARMnet eyes listing for ‘iPaas’ tech platform
Not far behind is cashed up NSW porphyry hunter Kaiser Reef (ASX:KAU), which hopes to replicate Alkane’s (ASX:ALK) success at Boda.
