Resources (again) leads the $4.7bn motza raised in August

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.

Small cap deals

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.

A number of deals were done by companies that had been big winners from COVID. Two examples are ecommerce plays Harris Technology Group (ASX:HT8) and Digital Wine Ventures (ASX:DW8).

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.

This included Firefly Resources (ASX:FFR), Xanadu Mines (ASX:XAM) and Sihayo Gold (ASX:SIH).

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.

Resources dominates larger caps

Among stocks with market caps between $100m and $500m, resources companies again accounted for a significant proportion of the capital raises done in August.

Gold, particularly companies with operations in Western Australia, was again dominant, with companies like Pantoro (ASX:PNR) and Mincor Resources (ASX:MCR) topping up the coffers.

The ASX’s other two IPOs in August, DUG Technology (ASX:DUG) and 4D Medical (ASX:4DX), also accounted for a significant sum, having raised $35m and $56m respectively.

Already listed tech stocks raised their fair share of cash too.

Deals in the tech sector ranged from electric scooter manufacturer Vmoto (ASX:VMT) to buy now, pay later stock Splitit (ASX:SPT), which raised $9.6m and $45m respectively.

Notable deals done by large cap stocks include a $400m+ raising by rare earths producer Lynas Corp (ASX:LYC) and a $158m raising by the ASX’s biggest online retailer, Kogan (ASX:KGN).