Capital raisings recap: ASX companies raised $51 billion in 2020, the highest in five years
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2020 saw an unprecedented number of capital raisings, totalling over $50 billion – the highest since 2015.
The year began on a quiet note but when COVID-19 hit, companies rushed to the banks for funds to either stay afloat or pounce on new opportunities.
As of December 18, capital raised by ASX companies in 2020 totalled almost $51.2 billion across just over 1200 deals according to Bloomberg.
The financial sector easily raised the most capital with nearly $15 billion while tech stocks raised $2.7 billion, health $3.4 billion and resources $7.7 billion.
With many companies raising capital at the market bottom, the average company is up 144 per cent since deal completion.
Looking specifically at the IPO market, ASX listees raised $5.17 billion in capital across approximately 70 companies, despite a market drought for a number of weeks when COVID-19 first broke out.
The largest was coal export terminal operator Dalrymple Bay (ASX:DBI) which raised $1.2 billion.
IPOs performed more modestly, having an average gain of 32 per cent.
The top performer was enterprise asset management software stock COSOL (ASX:COS) which is up nearly 300 per cent since listing.
While companies receiving funds were undoubtedly the biggest winners, they were not alone. 2020’s capital raising run on the ASX was also a windfall for the brokers.
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The banks servicing the large cap sector – UBS, Macquarie and Goldman Sachs – all came out at the top of the list.
But looking at brokers focused on the small and mid cap sectors, Canaccord and Bell Potter (which is ASX listed as Bell Financial (ASX:BFG)) did well, raising $2 billion and $1.8 billion respectively.
Rounding out the well known brokers, Morgans raised $845 million, Ord Minnett raised $535.4 million and Taylor Collison raised $86 million.
The ASX’s only other listed broker Euroz (ASX:EZL) raised just under $500 million.