Resources (again) leads the $4.7bn motza raised in August
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The capital raising wave shows no sign of crashing with August’s total coming in at $4.7bn.
Once again resources companies raised more than any other sector — $163m of the $296m raised by companies with market capitalisations below $100m.
For companies with market caps above that, resources stocks raised over $1bn. However this was usurped by August’s largest deal, a $2bn raise by Sydney Airport (ASX:SYD).
August’s deals are also holding up strong, with the average company up 36 per cent since their respective capital raisings were completed.
The most noteworthy deal was a $5m raise by medtech stock G Medical (ASX:GMV).
This is because after months of speculation, the company eventually announced it wanted to list on the NASDAQ — a move which would see it quit the Australian bourse.
Both stocks have become multi-baggers due to an e-commerce boom sparked by COVID-19 lockdowns, but both companies tapped investors for cash — $3.5m and $5m respectively.
In resources, investors are still looking for gold multi-baggers and several explorers with promising early results were able to raise capital.
Two companies with market capitalisations below $100m at the time of their offer — Dynamic Drill & Blasting (ASX:DDB) and health food company Forbidden Foods (ASX:FFF) — made their ASX debuts in August
Here’s a list of all ASX small and micro cap raisings completed in August (by date of securities listing on the ASX):
Swipe or scroll to reveal the full table. Click headings to sort.
Among stocks with market caps between $100m and $500m, resources companies again accounted for a significant proportion of the capital raises done in August.
Already listed tech stocks raised their fair share of cash too.