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

Company ASX code IPO status Focus Fund raising Issue price
AltoStratos ATO Withdrawn Supply chain delivery technology $16-$25m 40c
Australian Family Lawyers AFL Offer closes April 29; Listing set for May 10 Law firm $4-$6.5m 20c
Australian Industrial Minerals AAM Withdrawn Industrial minerals $5m 25c
Australian Nutrition & Sports AN1 Was due to list Apr 3; ASIC has issued an interim stop notice Dairy formula $5-$8m 20c
AXS Group AXS Withdrawn Software provider to the finance, insurance and funds sector $7m 25c
Expose Resources EXX Listing date extended to April 10 Gold $4.5m 20c
Frugl Pre-IPO funding; planning listing Grocery price comparison - -
Gold Tiger Resources GRA Offer closing May 10; Listing planned for May 22 Gold $4-$5m 20c
irexchange IRX Withdrawn Retail tech $17.5m 90c
Jobstore Group JOB Was due to list Dec 5 AI-powered recruitment $6.6-8m 20c
Koligo Therapeutics KOL Withdrawn Regenerative medicine $6-$7m 20c
Melior Resources Seeking ASX-listing in 2019 Mineral sands $5m
PKS Holdings PKS Offer closes May 27; Listing set for June 6 Healthcare technology $21.5m 20c
Powerwrap PWL Offer closes May 3; Due to list May 23 Investment software platform $17.4m 35c
Prospa Group PGL Offer closes May 31; Due to list June 11 Small business lending $109.6m $3.78
Renergen RLT Due to list May 21 Helium $5-10m 80c
Trigg Mining TMG Due to list June 28 Potash $4.5m 20c
Tubi Limited 2BE Offer closing May 27; Due to list June 14 Polyethylene pipe manufacturer $5.76m 20c
Victory Offices VOL Offer closing May 31; Due to list June 14 Serviced offices $30m $2
Viva Leisure VVA Offer opens May 13; Due to list June 7 Health 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 Date ASX Code Company IPO Price Price Intra-day May 21 % Change
01/29/2019 SPT Splitit Payments 0.2 0.89 3.45
02/13/2019 UWL Uniti Wireless 0.25 0.95 2.8
09/21/2018 AGH Althea Group Holdings 0.2 0.625 2.125
12/28/2018 AMS Atomos 0.41 1.04 1.53658536585
07/18/2018 KTD Keytone Dairy Corp 0.2 0.5 1.5
12/18/2018 EX1 Exopharm 0.2 0.45 1.25
04/18/2019 NXS Next Science 1 2.23 1.23
03/29/2019 EOF Ecofibre 1 2.19 1.19
10/15/2018 SMX Security Matters 0.2 0.435 1.175
02/22/2019 MPH Mediland Pharm 0.2 0.35 0.75
12/13/2018 EMV EMvision Medical Devices 0.25 0.405 0.62
04/17/2019 RDY Readytech Holdings 1.51 2 0.324503311258
07/20/2018 CXL Calix 0.53 0.69 0.301886792453
05/29/2018 PYG PayGroup 0.5 0.65 0.3
12/12/2018 HMD HeraMED 0.2 0.25 0.25
07/30/2018 CR1 Constellation Resources 0.2 0.24 0.2
08/20/2018 NIC Nickel Mines 0.35 0.41 0.171428571429
12/14/2018 YRL Yandal Resources 0.2 0.225 0.125
11/29/2018 NWM Norwest Minerals 0.2 0.22 0.1
05/07/2019 MRZ Mont Royal Resources 0.2 0.21 0.05
05/25/2018 CPV Clearvue Technologies 0.2 0.2 0
11/30/2018 RDC Redcape Hotel Group 1.13 1.08 -0.0442477876106
07/09/2018 PGX Primero Group 0.4 0.38 -0.05
06/22/2018 WGB WAM Global 2.2 2.06 -0.0636363636364
10/12/2018 TGF Tribeca Global Natural Resources 2.5 2.29 -0.084
02/14/2019 A1G African Gold 0.2 0.18 -0.1
03/07/2019 CBY Canterbury Resources 0.3 0.265 -0.116666666667
09/11/2018 HLA Healthia 1 0.88 -0.12
05/29/2018 GAL Galileo Mining 0.2 0.175 -0.125
07/13/2018 VEA Viva Energy Group 2.5 2.18 -0.128
08/15/2018 TMR Tempus Resources 0.2 0.165 -0.175
07/05/2018 RMY RMA Global 0.25 0.205 -0.18
09/12/2018 14D 1414 Degrees 0.35 0.285 -0.185714285714
10/23/2018 CRN Coronado Global Resources 4 3.23 -0.1925
07/27/2018 NSB NeuroScientific Biopharmaceuticals 0.2 0.16 -0.2
08/24/2018 KWR Kingwest Resources 0.2 0.155 -0.225
10/17/2018 ID8 Identitii 0.75 0.565 -0.246666666667
05/30/2018 KRX Koppar Resources 0.2 0.15 -0.25
12/13/2018 TYM Tymlez Group 0.22 0.16 -0.272727272727
12/05/2018 CRS Caprice Resources 0.2 0.145 -0.275
06/13/2018 VN8 Vonex 0.2 0.13 -0.35
09/17/2018 VEN Vintage Energy 0.2 0.13 -0.35
10/19/2018 QEM QEM 0.2 0.125 -0.375
09/13/2018 ARN Aldoro Resources 0.2 0.12 -0.4
02/19/2019 CLB Candy Club Holdings 0.2 0.12 -0.4
07/06/2018 WOA Wide Open Agriculture 0.2 0.115 -0.425
09/21/2018 AR9 Archtis 0.2 0.115 -0.425
10/02/2018 SGI Stealth Global Holdings 0.2 0.096 -0.52
07/26/2018 RFR Rafaella Resources 0.2 0.08 -0.6
12/20/2018 FIJ Fiji Kava 0.2 0.08 -0.6
10/31/2018 WWG Wiseway Group 0.5 0.19 -0.62
11/07/2018 MOH Moho Resources 0.2 0.076 -0.62
11/30/2018 NVU Nanoveu 0.2 0.075 -0.625
11/08/2018 GSM Golden State Mining 0.2 0.07 -0.65
08/16/2018 SLZ Sultan Resources 0.2 0.054 -0.73
06/21/2018 RZI Raiz Invest 1.8 0.475 -0.736111111111
08/30/2018 CM1 Coolgardie Minerals 0.2 0.052 -0.74
05/10/2019 360 Life360 4.79 4.31 -0.1