It has been a hectic 12 months for capital raisings on the ASX, but one that netted handsome returns for recipient companies as well as investors.

March 2020 saw capital raising activity shudder to a near halt but activity picked up again in April and 2020 closed with over $50 billion being raised.

Companies raised capital for varying reasons for simply staying afloat (such as airlines), wanting to pivot into new opportunities (such as by acquiring new assets) or just strengthen the balance sheet.

Investors did their part, and chipped in with few other investment opportunities offering the promise of any substantial returns. And for those that held for the 12 months, the reward has been handsome.


The average return from ASX capital raisings

Fresh Equities data provided to Stockhead has shown that investors who got into ASX capital raises in April last year would’ve netted a median return of 23.21 per cent and an average return of 90 per cent.

This data comes from a sample of 1,046 capital raises since April last year.

Some investors have done even better, with 256 deals having more than doubled in value and 139 having more than tripled in value.

Smaller capitalised companies performed better than their larger peers with companies with market capitalisations below $150 million returning 115 per cent.

Just over 60 per cent of these deals sought help from Fresh Equities and its clients and the weighted average return for their deals was approximately 30 per cent.

“Fresh has helped investors get access to hundreds of transactions over the past year, with a real focus on individual longer term, sophisticated investors looking to back smaller Australian companies they see growth and value in,” said CEO Ben Williamson.

“As we know, many investors are more accepting of short-term volatility on the way to long-term goals, while still building sustainable portfolios for the future. Investing in emerging growth via placements is a reflection of this attitude.”