Small caps were still raising money in May; health beat resources again
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Although May saw a gradual easing of COVID-19 restrictions, the economic recovery is still some way off and ASX companies kept rattling the tin.
Last month stocks with market capitalisations of under $100m raised $177m, a modest 5 per cent increase over April’s $168m tally.
Once again, the health sector beat the resources sector but the gap narrowed significantly. Health micro-caps raised $54m while resources stocks raised $49m.
Due to the ASX’s continued rise in May, only 10 per cent of micro-caps that raised capital are trading lower than before their fundraising.
Here’s a list of all ASX small and micro cap raisings completed in May (by date of securities listing on the ASX):
Swipe or scroll to reveal the full table. Click headings to sort.
Meanwhile, the small caps with market capitalisations between $100m and $500m raised $311m, but there were only a handful of deals done.
The sole IPO of the month was aged care-focused software-as-a-service (SaaS) stock InteliCare (ASX:ICR).
It entered the ASX after raising $5.5m at 20c per share and finished the week double its listing price.
Chalice received $75m in applications in the heavily oversubscribed raising. Director Timothy Goyder ended up selling $10m of his own shares to cater for some institutions that missed out.
Other junior explorers seeking to follow in their footsteps also raised capital. One was Golden State Mining (ASX:GSM), which has a project just 13km from De Grey’s Hemi discovery.
Cash was also raised by Great Southern Mining (ASX:GSN), which has a West Australian project near Laverton where 77,000oz of gold was mined in the late 1930s before the operation closed during World War Two.
Among health stocks Invex Therapeutics (ASX:IXC) was the biggest deal raising $26m.
Invex released its deal just two days after announcing its anti Idiopathic Intracranial Hypertension (IIH) drug had passed a phase two clinical trial. It intends to use the majority of the proceeds for a phase three clinical trial.
Anti-cancer biotech Oncosil (ASX:OSL) raised $3m in a rights issue and $14m from a placement.
Buy now pay, later stock Splitit (ASX:SPT) raised $16m in a placement. It too announced hot demand for its shares and said it continued to see strong merchant sales growth despite the pandemic.