Another week, another couple of dropped IPOs.

AXS Group and Koligo Therapeutics have ditched their plans to list on the ASX after facing difficulties in raising cash.

In mid-April US biotech Koligo had to make some radical changes to its IPO offer.

The company dropped its pre-IPO valuation by $5m, to $10m, at the request of institutions which didn’t want to buy in at that level. Its business is therapies for patients with chronic pancreatitis and Type 1 diabetes.

Fintech AXS Group, meanwhile, was forced to halve the size of its IPO to $3.5m and delay its planned listing several times.

Liquidity has tightened up and as a result IPOs have become harder for the smaller players, according to Hedley Widdup, executive director at fund manager Lion Selection Group

“I’d say the IPO pipeline is a little bit stalled as a result of what we’ve seen over the last little while and it needs an impetus to get going again,” he told Stockhead.

“You’d need to see a fair uptick I think in funding the junior companies and those people with IPOs in preparation feel like it’s worth getting started again.”

Cheer up … it’s not all doom and gloom. Here’s what might do well in an IPO.

On the resources front, exploration success near the majors is usually a good starting point for a successful IPO.

“Winu was a good one. So if someone was in that part of the world with an unlisted company with a substantial amount of ground there I suspect that would be an IPO that would get away,” Widdup said.

READ: Rio Grande: The Winu copper find is real, possibly ‘colossal’ – and these juniors are right next door

“The Gawler Craton is another one — BHP had that success. Victorian gold, everyone is looking for the new Fosterville.

“It’s probably a bit late for watermelon shaped nuggets in the Pilbara now, but that sort of theme where someone comes up with something that grabs the market’s attention.”

Resources floats are a bit thin at the moment, with Gold Tiger Resources and Trigg Mining the only two still in the running to make it onto the ASX.

Backdoor listings seem to be the preferred way of breaking onto the ASX at the moment.

Private Colombian gold hunter Andes Resources has cosied up to ASX-listed Metminco (ASX:MNC) in its ambitions to break onto the local bourse.

READ: Here’s why Andes Resources thinks a backdoor listing is better than an IPO

It is the third private junior explorer to attempt a backdoor listing this year.

Gold explorer Carnaby Resources had also been planning an IPO, but changed tack and in March this year announced it would instead be tying the knot with already listed Berkut Minerals (ASX:BMT).

Private manganese explorer Rolek Resources also attempted a backdoor listing last year and this year through the shell of Shaw River Manganese (ASX:SRR), but in late March revealed it couldn’t raise the $5m it needed to get back onto the ASX.

 

Is NZ cannabis a goer?

The cannabis sector still seems hopeful though, with New Zealand’s Cannasouth the next pot stock looking to debut on the New Zealand Stock Exchange — the first medicinal cannabis company to do so.

Cannasouth is researching the medically beneficial attributes of cannabinoid compounds such as cannabidiol (CBD) and tetrahydrocannabinol (THC).

The company has secured two controlled drug import licences to import dried flower for research and provide initial cultivars for its growing facility.

Cannasouth is hoping to raise NZ$5m ($4.7m) to NZ$10m ($9.5m) via the issue of shares at 50c apiece.

The company is aiming for a June 19 debut on the NZ Exchange.

Here’s a list of upcoming ASX floats:

Swipe or scroll for full table

CompanyASX codeIPO statusFocusFund raisingIssue price
AltoStratosATOWithdrawnSupply chain delivery technology$16-$25m40c
Australian Family LawyersAFLOffer closes April 29; Listing set for May 10Law firm$4-$6.5m20c
Australian Industrial MineralsAAMWithdrawnIndustrial minerals$5m25c
Australian Nutrition & SportsAN1Was due to list Apr 3; ASIC has issued an interim stop noticeDairy formula$5-$8m20c
AXS GroupAXSWithdrawnSoftware provider to the finance, insurance and funds sector$7m25c
Expose ResourcesEXXListing date extended to April 10Gold$4.5m20c
Frugl Pre-IPO funding; planning listingGrocery price comparison --
Gold Tiger ResourcesGRAOffer closing May 10; Listing planned for May 22Gold$4-$5m20c
irexchangeIRXWithdrawnRetail tech$17.5m90c
Jobstore GroupJOBWas due to list Dec 5AI-powered recruitment$6.6-8m20c
Koligo TherapeuticsKOLWithdrawnRegenerative medicine$6-$7m20c
Melior ResourcesSeeking ASX-listing in 2019Mineral sands$5m
PKS HoldingsPKSOffer closes May 27; Listing set for June 6Healthcare technology$21.5m20c
PowerwrapPWLOffer closes May 3; Due to list May 23Investment software platform$17.4m35c
Prospa GroupPGLOffer closes May 31; Due to list June 11Small business lending$109.6m$3.78
RenergenRLTDue to list May 21Helium$5-10m80c
Trigg MiningTMGDue to list June 28Potash$4.5m20c
Tubi Limited2BEOffer closing May 27; Due to list June 14Polyethylene pipe manufacturer$5.76m20c
Victory OfficesVOLOffer closing May 31; Due to list June 14Serviced offices$30m$2
Viva LeisureVVAOffer opens May 13; Due to list June 7Health club operator$20m$1

Only a handful of companies that made their debut on the ASX in the past year have witnessed share price appreciation.

Nearly 64 per cent of ASX debutantes have wiped off between 4 per cent and 80 per cent of their value since listing.

Buy now, pay later stock Splitit (ASX:SPT) is still the lead gainer, trading 345 per cent higher than its IPO price of 20c.

Wireless internet provider Uniti Wireless (ASX:UWL) is not far behind with a 280 per cent rally since listing to 95c on Tuesday.

Just five of around 21 mining companies that floated in the past year have added value, but they are at the bottom of the leaders’ list with gains of between 5 per cent and 20 per cent.

Here’s a list of IPO performances over the past year:

Swipe or scroll for full table

Listing DateASX CodeCompany IPO PricePrice Intra-day May 21% Change
01/29/2019SPT Splitit Payments 0.20.893.45
02/13/2019UWL Uniti Wireless 0.250.952.8
09/21/2018AGH Althea Group Holdings 0.20.6252.125
12/28/2018AMS Atomos 0.411.041.53658536585
07/18/2018KTD Keytone Dairy Corp 0.20.51.5
12/18/2018EX1 Exopharm 0.20.451.25
04/18/2019NXS Next Science 12.231.23
03/29/2019EOF Ecofibre 12.191.19
10/15/2018SMX Security Matters 0.20.4351.175
02/22/2019MPH Mediland Pharm 0.20.350.75
12/13/2018EMV EMvision Medical Devices 0.250.4050.62
04/17/2019RDY Readytech Holdings 1.5120.324503311258
07/20/2018CXL Calix 0.530.690.301886792453
05/29/2018PYG PayGroup 0.50.650.3
12/12/2018HMD HeraMED 0.20.250.25
07/30/2018CR1 Constellation Resources 0.20.240.2
08/20/2018NIC Nickel Mines 0.350.410.171428571429
12/14/2018YRL Yandal Resources 0.20.2250.125
11/29/2018NWM Norwest Minerals 0.20.220.1
05/07/2019MRZ Mont Royal Resources 0.20.210.05
05/25/2018CPV Clearvue Technologies 0.20.20
11/30/2018RDC Redcape Hotel Group1.131.08-0.0442477876106
07/09/2018PGX Primero Group 0.40.38-0.05
06/22/2018WGB WAM Global 2.22.06-0.0636363636364
10/12/2018TGF Tribeca Global Natural Resources2.52.29-0.084
02/14/2019A1G African Gold 0.20.18-0.1
03/07/2019CBY Canterbury Resources 0.30.265-0.116666666667
09/11/2018HLA Healthia 10.88-0.12
05/29/2018GAL Galileo Mining 0.20.175-0.125
07/13/2018VEA Viva Energy Group 2.52.18-0.128
08/15/2018TMR Tempus Resources 0.20.165-0.175
07/05/2018RMY RMA Global 0.250.205-0.18
09/12/201814D 1414 Degrees 0.350.285-0.185714285714
10/23/2018CRN Coronado Global Resources 43.23-0.1925
07/27/2018NSB NeuroScientific Biopharmaceuticals0.20.16-0.2
08/24/2018KWR Kingwest Resources 0.20.155-0.225
10/17/2018ID8 Identitii 0.750.565-0.246666666667
05/30/2018KRX Koppar Resources 0.20.15-0.25
12/13/2018TYM Tymlez Group 0.220.16-0.272727272727
12/05/2018CRS Caprice Resources 0.20.145-0.275
06/13/2018VN8 Vonex 0.20.13-0.35
09/17/2018VEN Vintage Energy 0.20.13-0.35
10/19/2018QEM QEM 0.20.125-0.375
09/13/2018ARN Aldoro Resources 0.20.12-0.4
02/19/2019CLB Candy Club Holdings 0.20.12-0.4
07/06/2018WOA Wide Open Agriculture 0.20.115-0.425
09/21/2018AR9 Archtis 0.20.115-0.425
10/02/2018SGI Stealth Global Holdings 0.20.096-0.52
07/26/2018RFR Rafaella Resources 0.20.08-0.6
12/20/2018FIJ Fiji Kava 0.20.08-0.6
10/31/2018WWG Wiseway Group 0.50.19-0.62
11/07/2018MOH Moho Resources 0.20.076-0.62
11/30/2018NVU Nanoveu 0.20.075-0.625
11/08/2018GSM Golden State Mining 0.20.07-0.65
08/16/2018SLZ Sultan Resources 0.20.054-0.73
06/21/2018RZI Raiz Invest 1.80.475-0.736111111111
08/30/2018CM1 Coolgardie Minerals 0.20.052-0.74
05/10/2019360Life3604.794.31-0.1