After a rush of IPOs in 2020, has investor fatigue finally set in?
It does seem that way.
Over the last week or so, a handful of hopeful debutants have made their entrance on the bourse – and flopped.
Pepper Money (ASX:PPM) was the latest stock to be battered after floating its shares on the ASX earlier this week.
The non-bank lender raised $500m in the IPO, the largest amount on the ASX this year. The company has generated loan originations to the tune of $32.3 billion since 2000. But investors were not impressed with the $2.89 IPO valuation, dumping the stocks and sent them to the current price of $2.55.
Hearing tech Audeara (ASX:AUA) was another recent IPO that didn’t perform out of the blocks. The company makes headphones designed to complement hearing aids, helping people with entertainment experiences. It raised $7 million at 20 cents per share, but plunged on debut and is now trading at 14c.
Two other IPOs that didn’t go as well as planned recently were iron ore developer Juno Minerals (ASX:JNO), and pathology company, Australian Clinical Labs (ASX:ACL).
Juno is a spin-off company from manganese-focused Jupiter Mines (ASX:JMS), owning a couple of magnetite projects in WA. It raised $3.9 million at 25 cents per share, and also received a $5 million seed capital from Jupiter, at a time when iron ore is trading near record levels. But all that didn’t excite investors; the stock plunged and is trading at 17c today.
Australian Clinical Labs raised a lofty $408 million in the IPO to help expand its pathology clinics network, which is currently the third largest in Australia.The company listed its stock at $4 a share, but was sold down soon after floating and is languishing now at $3.61.
Dangerous chemicals stock DGL Group (ASX:DGL) was the only one that bucked the trend, gaining 18pc after floating at $1. The company was founded by Kiwi rich-lister Simon Henry, and is a manufacturer and logistics provider of industrial chemicals across the trans-Tasman.
Best performing IPOs
| Code | Company | Listing Price | Current price | % | MktCap | Sector |
|---|---|---|---|---|---|---|
| TRU | Truscreen | 0.065 | 0.073 | 12 | $26.5M | Health |
| TRN | Torrens Mining | 0.2 | 0.16 | -20 | $10.9M | Resources |
| CHM | Chimeric Therapeutics | 0.2 | 0.3 | 50 | $56.1M | Health |
| FLX | Felix Group | 0.3 | 0.315 | 5 | $33.6M | Tech |
| AGC | Australian Gold & Copper | 0.2 | 0.155 | -23 | $10.8M | Resources |
| 5GG | Pentanet | 0.25 | 0.79 | 216 | $139.0M | Tech |
| M24 | Mamba Exploration | 0.2 | 0.25 | 25 | $8.7M | Resources |
| OZM | OzAurum Resources | 0.25 | 0.18 | -28 | $9.6M | Resources |
| BEX | Bike Exchange | 0.26 | 0.255 | -2 | $35.1M | Tech |
| MFB | My Food Bag | 1.85 | 1.28 | -30 | $310.0M | Consumer |
| 3MF | 3D Metalforge | 0.2 | 0.18 | -10 | $16.8M | Industrial |
| EZZ | EZZ Life Science | 0.5 | 0.47 | -6 | $5.6M | Consumer |
| NNG | Nexion | 0.2 | 0.19 | -5 | $12.7M | Tech |
| SHG | Singular Health | 0.2 | 0.275 | 38 | $16.1M | Health |
| DDH | DDH Drill | 1.1 | 1.08 | -2 | $360.0M | Industrial |
| GEN | Genmin | 0.34 | 0.29 | -15 | $81.0M | Resources |
| BMO | Baston Minerals | 0.2 | 0.195 | -3 | $11.2M | Resources |
| AWJ | Auric Mining | 0.25 | 0.165 | -33 | $6.9M | Resources |
| MM8 | Medallion Metals | 0.2 | 0.29 | 45 | $22.9M | Resources |
| ART | Airtasker | 0.65 | 1.2 | 85 | $476M | Tech |
| MPA | Mad Paws | 0.2 | 0.18 | -10 | $33.9M | Tech |
| KCC | Kincora Copper | 0.2 | 0.34 | 70 | $22.8M | Resources |
| PGD | Peregrine Gold | 0.2 | 0.35 | 75 | $10.0M | Resources |
| LGL | Lynch Group | 3.6 | 3.665 | 2 | $439.0M | Industrial |
| TG1 | TechGen Metals | 0.2 | 0.22 | 10 | $8.7M | Resources |
| DEL | Delorean | 0.2 | 0.225 | 13 | $41.2M | Energy |
| ILA | Island Pharmaceuticals | 0.2 | 0.33 | 65 | $14.4M | Health |
| PHL | Propell | 0.2 | 0.12 | -40 | $10.6M | Tech |
| ICL | Iceni Gold | 0.2 | 0.21 | 5 | $22.2M | Resources |
| FRB | Firebird Meta | 0.2 | 0.615 | 208 | $32.8M | Resources |
| LFS | Latitude Group | 2.6 | 2.35 | -10 | $2.4B | Financial |
| PWR | Peter Warren | 2.9 | 3.59 | 24 | $610.0M | Consumer |
| MKL | Mighty Kingdom | 0.3 | 0.225 | -25 | $21.1M | Tech |
| MLG | MLG | 1 | 1.24 | 24 | $186M | Resources |
| BCA | Black Canyon | 0.2 | 0.31 | 55 | $9.4M | Resources |
| ALB | Albion Resources | 0.2 | 0.43 | 115 | $5.6M | Resources |
| QML | Qmines | 0.2 | 0.255 | 28 | $18.2M | Resources |
| GL1 | Global Lithium | 0.2 | 0.14 | -30 | $22.2M | Resources |
| NKL | Nickelx | 0.2 | 0.14 | -30 | $7.5M | Resources |
| HMI | Hiremii | 0.2 | 0.255 | 28 | $7.6M | Tech |
| EPX | EPT Global | 0.2 | 0.17 | -15 | $29.0M | Tech |
| A8G | Austalasian Gold | 0.2 | 0.2 | 0 | $5.6M | Resources |
| DGL | DGL Group | 1.21 | 1.2 | -1 | $298.0M | Industrial |
| PPM | Pepper Money | 2.89 | 2.59 | -10 | $1.1B | Financial |
| AUA | Audeara | 0.2 | 0.15 | -25 | $9.3M | Tech |
| JNO | Juno | 0.25 | 0.175 | -20 | $24.4M | Resources |
| ACL | Au Clinical Labs | 4 | 3.53 | -12 | $727.0M | Health |
The negative sentiment and weak performances of recent IPO stocks have also led to a few floats being pulled.
Plans to list Best & Less, Aurora Healthcare, and pub operator Australian Venue Company for example, have been temporarily scratched.
But it’s not all bad news, and there have been some notable performers in this year’s IPO list.
Perth-based telecoms and 5G provider Pentanet (ASX:5GG), and Firebird Metal (ASX:FRB) have both returned over 200 per cent after listing.
Notable upcoming listings
| Code | Company | Price per share | Capital raised | Listing Date | Sector |
|---|---|---|---|---|---|
| SWP | Swoop Telecom | 0.5 | $20m | 27-May | Telecom |
| AM7 | Arcadia Minerals | 0.2 | $6.4M | 28-May | Resources |
| LDR | Lode Resources | 0.2 | $7.5m | 1-Jun | Resources |
| LM8 | Lunnon Metals | 0.3 | $15m | 1-Jun | Resources |
| KED | Keypath Education | 3.71 | $212.5m | 2-Jun | Tech |
| HIQ | hitIQ | 0.2 | $10m | 7-Jun | Tech |
| TRJ | Trajan Group Holdings | 1.7 | $80m | 7-Jun | Health |
| MMG | Monger Gold | 0.2 | $6m | 8-Jun | Resources |
| SB2 | Salter Brothers Emerging Companies | 1 | $20m | 8-Jun | Financial |
| FOS | FOS | 0.25 | $3m | 9-Jun | Industrial |
| AGN | Argenica Therpaeutics | 0.2 | $7m | 10-Jun | Health |
| POL | Polymetals Resources | 0.2 | $7m | 15-Jun | Resources |
A notable upcoming listing is Swoop Telecom (ASX:SWP), which will make its ASX debut today, 27 May. The company is chaired by Vocus founder and Airtasker chairman, James Spenceley. Its $20m capital raising saw significant interest, and was 15x oversubscribed.
Keypath Education (ASX:KED) will be another interesting debutant.
Founded in 2014, the edtech company runs online university courses through its technology and data platform, KeypathEDGE. It has partnered with 32 universities across Australia, North America, Britain and Malaysia, and has raised $212.5 million at $3.71 per share in the IPO.
At Stockhead, we tell it like it is. While Juno Minerals is a Stockhead advertiser, it did not sponsor this article.