IPOs raised $605 million in August – 24pc up on the same time last year
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It’s been a strong start to the financial year for initial public offerings with $6 billion raised in ASX floats since July.
Nine new listings occurred in August — after raising $605 million — taking the total since July to 25.
That’s 24 per cent more than the same time last year, according to the ASX’s latest monthly report.
Mega cap Viva Energy, which listed in July after selling 2 billion shares at $2.50 a pop — was responsible for the bulk of the $6 billion raised.
And there’s a strong pipeline of IPOs to come for the rest of the year, the ASX’s head of listings Eddie Grieve told Stockhead.
“We’ll see a continuation of small to mid cap IPOs as well as a few very large ones in the pipeline,” he said.
“I think in the small cap sector we are going to continue to see growth in the tech sector – Marley Spoon and Pivotal Systems are two examples of tech companies who’ve successfully listed recently and we will see that trend continue.”
Gold was a dominant IPO theme in August, with four of the precious metal explorers listing just as the latest gold price slide seemed to bottom out.
Sultan Resources (ASX:SLZ) debuted on August 16 and remains steady at 20c.
Kingwest Resources (ASX:KWR) listed August 24 and is sitting slightly below its listing price at 19c.
Some of the excitement for investors was drowned out by an upswing in de-listings, however, with 17 companies removed from the ASX in August alone.
The biggest name among those was video high-flyer Big Un. The company, which was once one of the exchange’s most exciting companies, was dumped on August 30 after administrators were called in to wind it up.
Biopharma Scigen was delisted on 28 August, after Singaporean SAC Capital picked up the company for $3.9 million on behalf of Chinese company Yifan International Pharmaceutical.
Total capital raised on the ASX for August was $2.5 billion, taking the financial year to date to $10 billion, a 7 per cent fall on the $10.8 billion by this time last year.
And in case you thought it was hard to keep up with the number of stories Stockhead publishes each day — keep in mind that the ASX’s 2,288 companies published no fewer than 13,441 announcements in August alone.
That’s some newsflow.
The ASX has been contacted for comment.