We don't spam. Learn more about our Privacy Policy

Vital Harvest’s IPO closes at the end of the week and it’s unusual: it’s allowing retail shareholders to easily participate in part of the offer.

The real estate investment trust is raising $185 million most from institutional investors, but has reserved $10 million for ordinary Joes.

Typically initial public offerings by mature, less risky companies are taken up by institutions and friends of the investment bank advising on the deal, says Australian Shareholders Association boss Judith Fox.

“It’s one of the things we’ve been concerned about for some years now,” Ms Fox told Stockhead.

“It’s particularly the large profitable companies that the investment banks offer access preferentially to professional shareholders and their institutional clients.”

>> Scroll down for a table showing how 83 ASX floats have performed in the past year

If retail shareholders do get a look in, it’s only because they are associated with the right broker which is handling the usually-small retail share allocation.

Vital Harvest isn’t acting out of altruism though.

Chair Liza Whitmore said the berry and citrus farmer was after stamp duty relief.

Victoria and South Australia said yes, but Tasmania stipulated that it would only do a tax deal if part of the IPO was thrown open to everyone in a general offer, rather than just through brokers.

The $175 million raised from institutions has already been sold and was oversubscribed. The $10 million retail offer closes on Friday. More info here.

Retail investors struggle for access to IPOs

The concern of the Shareholders Association is that retail investors are shunted into smaller and riskier investments when mature IPOs are pre-sold to institutions and professional investors — sometimes before the prospectus has even been issued.

A scan of the 45 or so IPOs listed on OnMarket, a platform which provides open, non-broker access to IPOs to retail investors, suggests only about eight have reasonable revenue figures or a profit.

Ben Bucknell, chief of IPO marketplace OnMarket, has  been lobbying for a rule change to give retail investors a minimum 25 per cent of shares offered in all initial public offers. Punters are locked out of two-thirds of IPOs, he says.

But he’s no closer to achieving his goal.

OnMarket is getting good traction among small IPOs and he says they have provided retail access to about a third of all IPOs since they launched in later 2015.

But Mr Bucknell, like Ms Fox, believes the retail end of the market is still being “dudded”.

The ASX was not able to respond to Stockhead queries before publication.


How many of the top IPOs have retail investors missed out on this year?

The top performing IPOs in 2018 so far have been Adriatic Metals, ReadCloud, Star Combo, ClearVue Technologies, Eagle Mountain Mining, Galileo Mining, Keytone Dairy, Paygroup, Elixinol Global, and Pivotal Systems.

Of these, retail investors without a broker connection could have had a piece of Keytone and ReadCloud.

The others either specified that investors had to go through brokers, or did not say at all whether they where offering retail investors anything.

Mr Bucknell says it can be difficult to work out from a prospectus whether it’ll give an retail allocation. By law prospectuses have to include an application, but that is no assurance that there are share there for you.

Among the biggest IPOs — whether they got through or not — you’d have had to know the right broker for Prospa and Viva (ASX:VVR), even though the latter allocated $600 million to retail investors.

Constellation Resources (ASX:CR1) is only inviting “certain members of the public”, according to the prospectus.

Here’s table showing how 83 ASX floats have performed in the past year:

Scroll or swipe to reveal full table. Click on headings to sort

ASX codeCompanyPrice change since IPOPrice Jul 24 (intraday)IPO priceMarket capListing dateRaisedFocus
CAGCAPE RANGE4.751.150.2$100.4mNov 2017$5.6mFintech
TNOTANDO RESOURCES2.837209302330.1650.043$26.6mNov 2017$4.5mResources - vanadium, copper, zinc
AU8AUMAKE2.31250.2650.08$68.9mOct 2017$6mChina-focused retailer
RCLREADCLOUD1.60.520.2$44.0mFeb 2018$6mTech - education
ADTADRIATIC METALS1.250.450.2$61.5mApr 2018$10mResources - lead, silver, copper, gold
5GN5G NETWORKS1.20.550.25$26.1mNov 2017$4mTech - broadband
EM2EAGLE MOUNTAIN0.90.380.2$35.2mMar 2018$8mResources - copper
MRLMAYUR RES0.8750.750.4$111.8mSep 2017$15.5mResources - mineral sands
S66STAR COMBO PHARMA0.80.90.5$72.5mMay 2018$5.8mHealth - vitamins
GALGALILEO MINING0.80.360.2$40.9mMay 2018$15mResources - cobalt, nickel
KTDKEYTONE DAIRY 0.70.340.2$53.3mJul 2018$15mDairy
PPEPEOPLE INFRASTRUCTURE0.651.651$106.0mNov 2017$25mWorkforce management
CPVCLEARVUE TECH0.60.320.2$32.8mMay 2018$5mTech - power-generating glass
ROOROOTS SUSTAINABLE0.60.320.2$20.5mDec 2017$5mAgTech
CXLCALIX 0.5660377358490.830.53$100.6mJul 2018$8mWater treatment
SP3SPECTUR0.5250.3050.2$14.7mAug 2017$4.5mTech - security cameras
EXLELIXINOL GLOBAL 0.51.51$153.4mJan 2018$20mCannabis
PYGPAYGROUP0.450.7250.5$37.5mMay 2018$8.5mTech - finance
OKROKAPI RESOURCES0.4250.2850.2$9.6mSep 2017$5mResources - gold
PVSPIVOTAL SYSTEMS0.4247311827962.651.86$293.0mJul 2018$53.5mComputer chip software
CWXCARAWINE RES0.40.280.2$15.9mDec 2018$7mResources - copper, gold
RCWRIGHTCROWD0.3666666666670.410.3$54.7mSep 2017$10mTech - cyber security
IXUIXUP0.3250.2650.2$41.2mNov 2017$12.5mTech - Collaboration software
KRXKOPPAR RESOURCES0.3250.2650.2$8.7mMay 2018$4.5mResources - copper, zinc
TGOTRIMANTIUM0.281.281$121.4mMar 2018$70mMarketing
JLGJOHNS LYNG GROUP0.251.251$276.4mOct 2017$96mBuilder
BC8BLACK CAT0.250.250.2$13.7mJan 2018$6mResources - gold
ABRAMERICAN PACIFIC0.20.240.2$41.7mJul 2017$15mResources - lithium
NTDNATIONAL TYRE0.1851.1851$119.7mDec 2017$59mAuto - tyre and wheel seller
DXNDATA EXCHANGE0.1750.2350.2$42.8mApr 2018$16mTech - cloud computing
TAOTAO COMMODITIES0.150.230.2$5.3mApr 2018$4.75mResources - zinc, gold
TINTNT MINES0.150.230.2$6.4mNov 2017$5.5mResources - tungsten
PFPPROPEL FUNERAL0.129629629633.052.7$294.5mNov 2017$131.2mFuneral services
DBFDUXTON BROADACRE0.041.561.5$67.6mFeb 2018$21.1mGrain industry
B2YBOUNTY MINING 0.02857142857140.360.35$145.5mJun 2018$18mResources - coking coal
N27NORTHERN COBALT0.0250.2050.2$9.4mSep 2017$4.2mResources - cobalt
PGXPRIMERO GROUP0.0250.410.4$60.5mJul 2018$25mEngineering
BAHBOJUN AGRICULTURE 00.30.3$36.5mDec 2017$7.7mBeverages
RHYRHYTHM BIOSCIENCES00.20.2$20.2mDec 2017$9mHealth - cancer diagnostics
STNSATURN METALS00.20.2$11.2mMar 2018$7mResources - gold
VEAVIVA ENERGY02.52.5$4.9BJul 2018$2.6bnEnergy
NESNELSON RESOURCES -0.0250.1950.2$9.4mDec 2017$5mResources - gold
A1CAIC RESOURCES-$14.3mNov 2017$10mResources - gold
JAYJAYRIDE GROUP-0.060.470.5$35.5mJan 2018$1.5mTech - share-ride
SILSMILES INCLUSIVE -0.070.931$52.4mApr 2018$35mHealth - dental chain
CP1CANNPAL ANIMAL-0.0750.1850.2$17.2mOct 2017$6mCannabis
MKGMAKO GOLD-0.0750.1850.2$12.0mApr 2018$6mResources - gold
MMMMARLEY SPOON -0.091549295774600011.291.42$149mJul 2, 2018$70mDinner delivery
PKDPARKD-$13.5mDec 6, 2017$6mConstruction - car parks
PRZPARAZERO-0.1250.1750.2$15.4mJun 18, 2018$5mTech - drones
P2PP2P TRANSPORT-0.1363636363641.141.32$89.7mDec 13, 2017$29.2mFleet mangement
IHRINTELLIHR-0.150.2550.3$26.5mJan 23, 2018$4.5mTech - HR
G1AGALENA MINING -$55.5mSep 7, 2017$6mResources - base metals
SCTSCOUT SECURITY-$17.3mAug 25, 2017$5mTech - home security
WOAWIDE OPEN AGRICULTURE-$12.0mJul 6, 2018$5mAgTech
GASSTATE GAS -0.1750.1650.2$21.6mOct 10, 2017$5.2mResources - gas
WNDWINDLAB-0.19751.6052$107.9mAug 23, 2017$50mEnergy - wind farmer
AS1ANGEL SEAFOOD -$20.1mFeb 21, 2018$8mSeafood
SISSIMBLE SOLUTIONS-$14.4mFeb 22, 2018$7.5mTech - Internet of Things
BGTBIO-GENE TECH-$19.2mNov 29, 2017$7.1mHealth - bug killer
BEMBLACKEARTH -0.2750.1450.2$8.5mJan 2018)$5.4mResources - graphite
AX8ACCELERATE RES -$6.4mFeb 14, 2018$5mResources - cobalt gold, copper
LRMLUSTRUM MINERALS-$5.6mNov 15, 2017$5mResources - coal
RGLRIVERSGOLD -$13.3mOct 10, 2017$6.1mResources - gold
NC6NANOLLOSE-0.3250.1350.2$10.1mOct 16, 2017$5mTech - plant-free fibre
CRDCREDIBLE LABS -0.3305785123970.811.21$202.6mDec 8, 2017$67mOnline loans
OGAOCEAN GROWN ABALONE-0.340.1650.25$28.7mNov 14, 2017$10mSeafood
CG1CARBONXT GROUP-0.3928571428570.4250.7$33.1mJan 23, 2018$10mCleanTech
BYHBRYAH RESOURCES-$6.8mOct 17, 2017$5mResources - copper, gold, manganese
CCGCOMMSCHOICE-0.420.1450.25$15.8mDec 21, 2017$7.5mIT services
SWFSELFWEALTH-0.4250.1150.2$13.6mNov 23, 2017$7.3mBroker
RZIRAIZ INVEST -0.4388888888891.011.8$61.6mJun 21, 2018$15.1mMicroinvesting
TIETIETTO MINERALS-0.450.110.2$23.9mJan 18, 2018$6mResources - gold
GO2GO2 PEOPLE-0.4750.1050.2$12.4mOct 31, 2017$10mTech - HR
EN1ENGAGE:BDR-$26.4mDec 14, 2017$10mMarketing
NUSNUSANTARA RESOURES-0.5357142857140.1950.42$24.6mAug 2, 2017$16.2mResources - gold
CY5CYGNUS GOLD-0.540.0920.2$6.4mJan 15, 2018$6mResources - gold
PODPODIUM MINERALS-0.6250.0750.2$7.2mFeb 28, 2018$5.5mResources - Platinum metals
SDXSIENNA CANCER-0.640.0720.2$13.0mAug 3, 2017$4.6mHealth - cancer
FDXFRONTIER DIAMOND -0.670.0660.2$13.3mJan 5, 2018$4mResources - diamond
WHKWHITEHAWK-$4.4mJan 24, 2018$4.5mTech - cyber security
CLICROPLOGIC-0.7750.0450.2$5.5mSep 12, 2017$8mAgTech
RD1REGISTRY DIRECT -0.920.0160.2$1.5mNov 1, 2017$2mTech - Company registry