Capital crunch hits ASX as fundraisings plunge 34pc

Cash raised via the ASX plunged 34 per cent in December, as a capital crunch made itself felt in the final month of the year.

During the last few months brokers and corporate advisors have consistently told Stockhead that raising capital, particularly for small caps, has been increasingly difficult in a disappointing market.

Over the last six months the Small Ordinaries is down 14 per cent, and the broader All Ordinaries is down 10 per cent.

Companies raised a total of $8.2bn of capital through the ASX in December 2018, compared to $12.3bn in the same month the year before.

In November, the total capital raised was up 215 per cent on the same period in 2017.

An ASX spokeswoman told Stockhead that in December 2017 Tatts Group raised $4.8bn, and that level of capital raising was replicated last year.

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The ASX also lost companies: 14 listed while 20 delisted.

The delistings included Traditional Therapy Clinics, which was booted when the ASX lost patience with its rotating door of directors and unclear financials. It’s currently in administration.

Capital Mining was also shown the door for potentially breaching listing rules and not responding to pointed questions from the ASX in a timely fashion.

New listings included Atomos (ASX:AMS) and regenerative medicine maker Exopharm (ASX:EX1).