It’s getting harder to list, raise money and stay on the ASX
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With one quarter remaining for the 2019 financial year, the outlook is not good for successful IPOs, raised capital and de-listings, according to the ASX’s latest monthly figures.
In the year to date 92 new entities have been admitted to the ASX, and only 11 since the start of the calendar year. That’s compared with 113 listings this time last year.
Meanwhile, there have been 109 companies removed from the ASX, compared with 73 de-listings at this time last year.
And while $73.7 billion in capital has been raised for the year to date — a 14 per cent improvement on the $64.4 billion of the prior year — capital raised in April slid 39 per cent year-on-year, dropping by more than $3 billion.
Of the 11 companies to successfully make their debut on the ASX thus far in 2019, seven have seen their share prices grow. In fact, average share price growth is sitting pretty at 73 per cent, but that is largely thanks to a few big winners.
Here is a table of stocks admitted to the ASX in 2019:
Payments provider Splitit (ASX:SPT) has had an outrageously successful few months, with shares trading 440 per cent above their offer price.
Wireless internet company Uniti Wireless (ASX:UWL) isn’t too far behind, its shares up 138 per cent on their offer price, despite some back-and-forth with the ASX about its fired co-founders.
Shares in cannabis stock Ecofibre (ASX:EOF) have also seen three-figure percentage gains, up 119pc.
At the other end of the scale, US lolly seller Candy Club (ASX:CLB) has had a sour start to its ASX days, down 45 per cent.
Here is a table of stocks purported to be listing in coming months:
Five companies have withdrawn their IPOs: AltoStratos, Australian Industrial Minerals, Irexchange, Cadence Opportunities and PVW Resources.