+70pc of small cap raises from April are currently trading above their offer price
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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).
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.