IPO Watch: The IPO train is still on track with 7 more ASX listings in February
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Australia’s equity capital markets have been open for business, and the trend doesn’t look to be stopping any time soon.
Following the IPO frenzy in December, January was a pretty good month too as another handful of stocks posted hefty returns on their listing prices.
From December 1 through January 20, 33 new companies joined the ASX boards and 25 of them posted a gain.
Two more stocks listed over the past fortnight, and Perth-based internet provider Pentanet (ASX:5GG) became the ASX’s latest successful telco listing with a strong debut last week.
The company raised $22.5m at 25c per share at closed yesterday at 61c for a gain of 144 per cent.
Pentanet was founded by brothers Timothy and Stephen Cornish in 2017, who were desperate for a solution to slow internet speeds in the Perth area.
5GG said it plans to use the proceeds of listing to launch an expansion of its network within the Perth area.
Joining 5GG on the boards was mining explorer Australian Gold and Copper (ASX:AGC), which raised $10m in an oversubscribed placement at 20c per share.
The company was one of the few recent entrants not to rip higher on debut, and closed yesterday near its listing price at 19c.
With the funds raised, AGC is capitalised to start work on multiple drilling programs at designated gold and base metals targets across NSW.
In the end a total of six companies listed in January, and there are another seven on the schedule with February listing dates (plus two more in March.
Here’s a quick summary:
|CODE||COMPANY||PRICE PER SHARE||CAPITAL RAISED||LISTING DATE||SECTOR|
|SHG||Singular Health Group||0.2||$6m||4-Feb||Health|
|3MF||3D Metal Forge||0.2||$10m||12-Feb||Industrial|
|EZZ||EZZ Life Science||0.5||$6m||26-Feb||Health|
Of the 10 stocks in the table, four are scheduled to list over the next week including Mamba Exploration, which is raising capital to explore prospective gold, copper, and nickel targets in WA.
M24 is headed up by Mike Dunbar, who has a strong track record when it comes to big mining hits, and the company is hoping to benefit from some ‘nearology’ Darling Range projects located nearby to Chalice Mines’ (ASX:CHN) famous Julimar discovery.
WA-based Singular Health is set to become the latest medtech to list publicly, with plans to raise up to $6m from investors.
The company’s core proprietary technology is its Volumetric Rendering Platform, which allows for the conversion of medical imaging data such as CT and MRI scans from 2D prints to interactive 3D models.
Gold explorer OzAurum is also set to list within the next week, raising $12m from sophisticated and retail investors in a project that has been more than 30 years in the making.
The company’s prospectus highlighted that Andrew Pumphrey has been securing tenements at Mulgabbie, Western Australia as far back as 1990 — a portfolio that now forms the basis of the company’s two key exploration projects.
Also on this week’s listing schedule is ecommerce play BikeExchange — an online marketplace platform that connects consumers with retailers to buy and sell new and used bikes and bike parts, as well as event tickets.
The company was established in 2007 and serves a global community of bike customers Australia/New Zealand, North America, Latin America and Europe.
The BikeExchange Prospectus says the company has over 1,450 retailers and 1,500 brands on its platform.
BikeExchange booked a net loss before tax of $2.907m in the 2020 financial year, on revenues of $3.671m.
It’s looking to raise $20m from investors to take advantage of the post-Covid tailwinds in ecommerce, its prospectus said, with ecommerce transaction value growth of 68 per cent in FY20.
BikeExchange intends to use the funds raised primarily for brand and customer acquisition marketing, product development and technology, and investment in resources to scale the business, the company said.