Participating in small cap raises is proving lucrative for investors, with 47 — or +71 per cent — of small cap raises in April currently trading higher than the price at which they raised cash.

Stockhead counted at least 66 offers from sub-$500m market cap companies last month, including IPOs, placements, and rights offerings.

Rights offerings give shareholders the ‘right’ to buy new shares at a discount to the current trading price. A placement is the sale of securities to a small number of private sophisticated investors.

Discounts to the current share price are often used to lure investors to participate in a raise. The Australian Financial Review estimates that the average discount to the prevailing share price all in ASX raisings over the six weeks until the end of April was about 19 per cent.

When it comes to small cap raises in April,  47, or +71 per cent, are now performing better than the offer price; some substantially so, like cloud call recording service Dubber Corp (ASX:DUB).

Just 13 companies are underwater on their capital raising price, such as Osprey Medical (ASX:OSP) and Electro Optic Systems (ASX:EOS).

 

‘Raise early, raise a lot’

A huge amount of capital — $13.8bn — was raised overall by ASX listed companies in April, a 138 per cent increase on the same month in 2019.

That beats the volume of cash raised at the height of the global financial crisis.

With so much COVID-19 inspired volatility, it hardly seemed like an attractive time to test the equity markets.

But Australian companies are currently following a just-in-case mantra of ‘raise early, raise a lot’ in order to avoid investor fatigue.

 

Here’s a list of all ASX small cap raisings completed in April (by date of securities listing on the ASX):

Swipe or scroll to reveal the full table. Click headings to sort.

Effective Date TICKER NAME OFFER SIZE (Million AUD) OFFER TYPE OFFER PRICE CURRENT PRICE [intraday May 15] PERFORMANCE SINCE OFFER %
04/28/2020 IBX Imagion Biosystems 0.4564 Placement 0.01 0.022 120
04/16/2020 AT1 Atomo Diagnostics 30 IPO 0.2 0.395 98
04/07/2020 DUB Dubber Corp 9.002 Placement 0.6 1.18 97
04/17/2020 PPE People Infrastructure 12.1 Placement 1.1 2.15 95
04/01/2020 BGL Bellevue Gold 26.5462 Placement 0.3 0.575 92
04/07/2020 OML oOh!media 38.5394 Placement 0.53 0.985 86
04/14/2020 WEB Webjet 115.261 Placement 1.7 3.07 81
04/06/2020 CHZ Chesser Resources 1.68 Placement 0.04 0.071 78
04/01/2020 SFG Seafarms Group 6.8606 Placement 0.03 0.053 77
04/16/2020 PAR Paradigm Biopharmaceuticals 35 Placement 1.3 2.28 75
04/16/2020 AWV Anova Metals 1.69271 RIGHTS 0.007 0.012 71
04/21/2020 BRN BrainChip Holdings 3.1187 Placement 0.03 0.051 70
04/09/2020 FAM Family Insights Group 0.66 RIGHTS 0.02 0.034 70
04/28/2020 DGR DGR Global 5.67193 RIGHTS 0.037 0.062 68
04/20/2020 SXL Southern Cross Media Group 47.4585 Placement 0.09 0.15 67
04/06/2020 SXL Southern Cross Media Group 121.12 RIGHTS 0.09 0.15 67
04/17/2020 MEY Marenica Energy 0.5 Placement 0.038 0.062 63
04/20/2020 ST1 Spirit Telecom 8.6629 Placement 0.11 0.175 59
04/21/2020 NCZ New Century Resources 27.3366 RIGHTS 0.15 0.235 57
04/09/2020 AEI Aeris Environmental 12.04 Placement 0.43 0.665 55
04/02/2020 ID8 Identitii 3.81632 RIGHTS 0.07 0.1 43
04/15/2020 MP1 Megaport 50.0004 Placement 9.5 13.39 41
04/08/2020 SW1 Swift Media 0.4103 Placement 0.015 0.021 40
04/06/2020 SW1 Swift Media 2.92438 RIGHTS 0.015 0.021 40
04/14/2020 PEK Peak Resources 1.5 Placement 0.015 0.02 33
04/16/2020 AHQ Allegiance Coal 1.9221 Placement 0.06 0.08 33
04/01/2020 GNM Great Northern Minerals 0.650505 RIGHTS 0.006 0.008 33
04/20/2020 DCN Dacian Gold 29.8231 Placement 0.3 0.4 33
04/09/2020 AVZ AVZ Minerals 1.8 Placement 0.045 0.06 33
04/08/2020 DCN Dacian Gold 68.5282 RIGHTS 0.3 0.4 33
04/28/2020 DGO DGO Gold 2.617 Placement 1.6 2.08 30
04/07/2020 CCA Change Financial 5.14 RIGHTS 0.05 0.065 30
04/06/2020 STN Saturn Metals 2.9642 Placement 0.27 0.35 30
04/27/2020 BLG BluGlass 1.0469 Placement 0.02 0.024 20
04/07/2020 OLV Otherlevels Holdings 1.41767 RIGHTS 0.005 0.006 20
04/03/2020 S Southern Gold 2.168 Placement 0.1 0.12 20
04/28/2020 RHP Rhipe 33.6277 Placement 1.6 1.91 19
04/28/2020 SO4 Salt Lake Potash 19.063 Placement 0.34 0.405 19
04/21/2020 CAJ Capitol Health 29.8398 Placement 0.16 0.19 19
04/07/2020 HCD Hydrocarbon Dynamics 0.846233 RIGHTS 0.015 0.017 13
04/03/2020 RSH Respiri 1.6528 Placement 0.055 0.062 13
04/07/2020 NC6 Nanollose 0.72 RIGHTS 0.024 0.027 12
04/28/2020 NTU Northern Minerals /strali 9 Placement 0.02 0.022 10
04/02/2020 IPD ImpediMed 24.9137 RIGHTS 0.0375 0.04 7
04/22/2020 GEM G8 Education 133.87 Placement 0.8 0.85 6
04/27/2020 MVF Monash IVF Group 40.1996 RIGHTS 0.52 0.545 5
04/29/2020 IFM Infomedia 69.9097 Placement 1.5 1.55 3
04/28/2020 STM Sunstone Metals 1.725 Placement 0.005 0.005 0
04/17/2020 PET Phoslock Environmental Technol 12 Placement 0.5 0.5 0
04/23/2020 MX1 Micro-X 8.75 Placement 0.14 0.14 0
04/21/2020 MX1 Micro-X 6.25051 RIGHTS 0.14 0.14 0
04/17/2020 KZA Kazia Therapeutics 7.2167 Placement 0.4 0.4 0
04/17/2020 AUZ Australian Mines 1.45 Placement 0.008 0.008 0
04/17/2020 CIP Centuria Industrial REIT 129.999 Placement 2.62 2.58 -2
04/27/2020 VHT Volpara Health Technologies Lt 28.0001 Placement 1.3 1.28 -2
04/08/2020 SMC Strategic Minerals Corp NL 4.12282 RIGHTS 0.36 0.35 -3
04/21/2020 EOS Electro Optic Systems Holdings 134.281 Placement 4.75 4.38 -8
04/02/2020 FMS Flinders Mines 14.5215 RIGHTS 0.025 0.023 -8
04/30/2020 ATU Atrum Coal 15.3464 Placement 0.23 0.21 -9
04/15/2020 BLK Blackham Resources 26 Placement 0.01 0.009 -10
04/17/2020 HNG HGL 3.88435 RIGHTS 0.2 0.18 -10
04/20/2020 AL3 AML3D 9 IPO 0.2 0.17 -15
04/14/2020 CDY Cellmid 4.9999 Placement 0.22 0.185 -16
04/07/2020 OSP Osprey Medical 15.5447 RIGHTS 0.012 0.009 -25
04/14/2020 AYR Alloy Resources 1 Placement 0.002 0.015 -25
04/02/2020 CGL Citadel Group /The 127.403 Placement 4.65 2.8 -40

 

Atomo Diagnostics (ASX:AT1) – one of only two IPOs for the month – raised $30m at 20c per share. The company is now up 98 per cent to 39.5c per share.

Cloud call recording service Dubber Corp (ASX:DUB) raised about $9m at 60c per share – a tiny 2.3 per cent discount to the 10-day volume weighted average price (VWAP).

The stock is now up 97 per cent to $1.18 per share.

People Infrastructure Group (ASX:PPE) raised $12.1m through a placement at a 2.8 per cent discount to the 10-day VWAP.

The stock has also performed well since the offer, up +95 per cent from $1.10 to $2.19 per share.

Gold hopeful Bellevue Gold (ASX:BGL) raised $26.5m in a share placement which saw the world’s largest resources fund, Blackrock, emerge with a 10 per cent stake.

The placement was priced at 30c a share, which represented a 7.7 per cent discount to Bellevue’s last trading price of 32.5c.

The stock is now trading at 64c per share.