IPO Watch: Which ASX sector is most likely to produce the next hot IPO? The answer may surprise you
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In 2021 the average IPO is up 33 per cent and last year’s cohort is running almost parallel with an average gain of 34 per cent.
All sectors have their fair share of winners and losers but one sector has a particularly large share – retail.
Almost all retail IPOs in the last 12 months are above their IPO price.
And skincare clinic operator Silk Laser (ASX:SLA) has done well too, sitting on a 38 per cent gain.
Yesterday’s listing of beauty and wellness company EZZ Life Science (ASX:EZZ) continued this trend, with the company gaining over 50 per cent on debut. While the company doesn’t yet have brick and mortar stores, it plans to open one with the IPO proceeds.
Here’s a list of retail IPOs in the last 12 months…
|Code||Company||IPO Price||Price now||% gain/loss||Market Cap||Specialty|
Nevertheless if you’re looking for the best performing major sector, it is healthcare with a 48 per cent gain.
The “worst” performer was Live Verdure (ASX:LV1) which is currently at parity with its IPO price.
|Code||Company||IPO price||Price now||% gain||Market Cap|
|DOC||Doctor Care Anywhere||0.8||1.2||50||$213M|
|EZZ||EZZ Life Sciences||0.5||0.72||44||TBD|
Hot subsectors include cannabis and telcos. While both have only produced two IPOs in the last year they’ve been rippers.
While the resources sector still has a 35 per cent average gain, recent IPOs haven’t gone as well with some recent listees underperforming such as Metal Hawk (ASX:MHO) and Auric Mining (ASX:AWJ). Even some of the better performers such as Benz Mining (ASX:BNZ) have been historically subdued.
And all three BNPL IPOs of the last 12 months – (Payright (ASX:PYR), Laybuy (ASX:LBY) and Zebit (ASX:ZBT)) – have lagged too, even in spite of continued growth from Zip Co (ASX:Z1P) and Afterpay (ASX:APT).
There are approximately a dozen IPOs to list in the next few weeks.
Listing on Friday is New Zealand based meal kit deliverer My Food Bag (ASX:MFB). Food stocks haven’t had a good record of late with Youfoodz (ASX:YFZ) shedding more than a third of its value and Forbidden Foods (ASX:FFF) falling back to parity after gaining as much as 100 per cent on its IPO day.
The most anticipated are platforms Airtasker (ASX:ART) and MadPaws (ASX:MPA) which are online market places for “tasks” and pet sitters. The listing are down for March 22 and March 26 respectively.
Arguably the closest parallel is BikeExchange (ASX:BEX) which listed a few weeks ago and is an online cycling market place. This company has been stagnant since its listing.
By virtue of over $80 million for its IPO, Airtasker will be the biggest listing so far in 2021. While it has been private it has been hailed as one of Australia’s startup success stories.
In just a few weeks, the public markets will give their own verdict.
The majority of remaining IPOs are resources, with gold dominating the list. While the recent performance of gold IPOs since the gold price began to drop doesn’t bode well, one standout is Genmin (ASX:GEN) which is in iron ore.
The most recent iron ore IPO is Akora Resources (ASX:AKO) which listed in mid-December, and while it is off all-time highs, is still sitting on a 100 per cent gain since listing.
Here’s a list of upcoming ASX IPOs…
|Code||Company||Price per share||Capital raised||Listing Date||Sector|
|MFB||MY Food Bag||1.85||$342.5M||5-Mar||Consumer|