IPOs are dropping like flies as a volatile market freaks out floaters
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IPOs are falling over everywhere, as the shaky market spooks new listings.
An ASX spokesperson however says they’ve seen 109 IPOs so far this year, and he believes 2018 is “broadly in alignment” with prior years, which saw 142 listings in 2017, and 133 in 2016.
He says November and December are traditionally strong months for listings.
But right now, a swathe of companies have pulled or are delaying listings and blaming it on market conditions.
They have reason to be concerned as well: Stockhead has found that two-thirds of this year’s listings are underwater.
Are they or aren’t they?
Of the companies that either recently announced IPOs or were due to list on the ASX in the last months, a group of Israeli companies are yet to be seen.
High tech slushy machine seller Nice Vend cancelled its listing.
Stockhead is seeking comment from uber-accurate weight machines maker Shekel Brainweigh as to why their October 26 listing date has slipped.
Investors shouldn’t hold their breath over a promised listing from Israeli cybersecurity firm Votiro either.
The company confirmed to Stockhead that despite the $11.2 million it raised in pre-IPO funding from investors in July last year, with a promise to list by the end of 2017, it’s now nixed that idea entirely.
On Thursday, ASX-listed Senetas (ASX:SEN) bought a controlling stake for $8m with a pre-emptive right of first refusal to acquire Votiro in future.
The ASX is now the third wheel in this relationship.
Canberra-HQ’d gym chain Viva Leisure shelved its $26m IPO for next year as well, and Centaur Resources no longer appears in the ASX’s upcoming IPOs list.
Tawana (TAW) spinoff Cowan Lithium and coking coal company Montem are both TBA as to when they might list.
One company ASX-watchers can expect to ring the bell before the year closes is Singaporean 3D phone protector maker Nanoveu.
Chief Alfred Chong says their $6m float was oversubscribed, they’ve submitted the paperwork and they’re just waiting on the ASX to give them a date.
He hopes they’ll be swimming with the Aussie tech stocks within weeks.
It’s all just too hard
Lion Selection Group director Hedley Widdup focuses on resources and has seen a few companies come through his door marketing IPOs, but he says it’s been much harder in the last two months to raise money than the rest of the year.
“And 2018 has been a lot harder than 2017, that’s definitely something that a lot of people would agree with,” he told Stockhead.
“If you’re a junior explorer or developer MD the interest isn’t there this year – not even for a conversation.”
He says some of that can be laid at the feet of the broader market.
Of the IPOs he seeing marketing around Perth, Mr Widdup says they’re hard to read but “very much doubts” they’re filling their subscription books.
|Company||ASX code||IPO status||Focus||Fund raising||Issue price|
|AMD Resources||ADM||Cancelled||Gold, silver||$22m||50c|
|Andes Resources||-||Undecided, possibly April-May 2019||Gold||$3-5m||-|
|Biomics Biopharma||BBM||Cancelled||China-based biotech||$13-16m||20c|
|Centaur Resources||CR3||Cancelled||Lithium and other battery metals||$15m||20c|
|China Track||CTC||Postponed, was due to list Jun 11||Bulldozer parts||$32-40m||80c|
|Eden Health||ETK||Cancelled in March||Kiwi fruit-focused AgTech||$15.6-20m||20c|
|Haixi Pharma||HXP||Cancelled||China-based, pain relief biotech||$25-30m||50c|
|International Cobalt Resources||ICR||Postponed||Cobalt, nickel, gold||$5-6m||30c|
|Montem Resources||MR1||TBA||Canada-focused coking coal||$15-20m||50c|
|Ocean Guardian||OCG||Cancelled||Shark deterrent||$5m||-|
|Power Asia Limited||P88||Cancelled||Renewable energy||$9m||20c|
|Prospa||PGL||Postponed||Small business loans||$146m||3.64|
|Rong Yu Pharma||RY8||Postponed||Traditional Chinese Medicine||$14-20m||20c|
|Secure2Go Group||S2G||Postponed indefinitely||Cyber security||$4-5m||30c|
|Tartana Resources||-||IPO suspended due to ASIC query||Zinc, copper||$5-6m||-|
|Trigg Mining||TMG||Postponed indefinitely||Potash||$4-6m||-|
|Universal Biosecurity||UBL||Cancelled||Safe pest control||$5m||20c|
|XS Resources||XS1||TBA||Precious, base metals||$4.5m||20c|
|Zaige Waste Management||ZGZ||Cancelled||China-based recycling||$14-20m||0.2|