IPOs: who’s going ahead, who’s on hold and who’s missing in action
There is one company on the ASX’s upcoming IPO list which is unlikely to feature in portfolios soon — and three others that definitely won’t.
Raptor Resources’ $4 million offer was supposed to close in February but it no longer has a potential listing date — or a functioning website.
Secure2Go was “closing in on an IPO”, according to media reports, in December 2016.
It has pulled the prospectus for the time being but does expect to go ahead with listing “in due course”.
Prospech, a silver and gold explorer with eyes on Slovakia, pulled out of the listing process last week. It had already extended its offer period once from July 21 to September 6.
And MacArthur Australia pulled its IPO in July on the back of “market conditions” which were making fundraising difficult.
“The value of capital raised in the public markets on the ASX is down sharply so far in 2017,” MacArthur told investors.
“Capital worth $13.67 billion has been raised over the past five months, which is down 40 per cent of the $22.6 billion raised during the same time frame last year.”
Parent MacArthur Minerals is an Australian company listed in Canada.
The companies have been contacted for comment.
Then there are the unknowns.
Perth gold explorer Bryah Resources has extended its timeline twice, as has Biomics Biopharma once.
Okapi Resources only became a company in May and wants to raise cash for gold exploration –one in the Kimberley goldfields and one a little further afield — in the Democratic Republic of Congo.
They had planned to be listed by the end of August.
Mayur Resources, Northern Cobalt and Riversgold have all proposed listing dates in the last 13 days — but are yet to be seen.
IPOs due in 2017
There are 19 companies due to list in Australia before the end of the year, according to the ASX and prospectuses.
Some of the more intriguing include Nanollose, which claims to have invented a new kind of cellulose fibre, CannPal which is jumping on board the increasingly popular cannabis-for-pets trend, and Titomic which deals in super-charged 3D printing technology.
But if the middle of the year was a tough one for companies looking to raise funds, listings in the last two months haven’t had much to cheer about.
Of the 11 companies that have listed since the end of July, only three are trading above their issue price.
Galena Mining launched at 20c and closed yesterday at 25.5c.
Solar security camera operator Spectur sold at 20c and is now sitting at 31c.
American Pacific Borate & Lithium also launched at 20c and is now 24c.
Sienna Cancer Diagnostics suffered when long term shareholders exited the stock on listing. It’s yet to rally to its 20c issue price.
An oversubscribed IPO is no marker of how a company will perform after listing.
Croplogic and Windlab both launched with heavily oversubscribed offers.
Croplogic dropped 23 per cent on its debut on Tuesday, while Windlab issued shares at $2 and is now at $1.63.
Just this week, Titan Minerals, which is looking to be reinstated to the ASX, said its $6 million offer was “well oversubscribed”.