IPO watch: ASX floats continue to struggle as shares sink below issues prices
Newly-listed ASX stocks are struggling to make headway, with two thirds having lost ground since debut.
Even the highly anticipated $3 billion coal play Coronado (ASX:CRN) has failed to impress, not yet trading above its $4 IPO price.
Coronado — the biggest coal mining float since Yancoal Australia’s $1.5 billion listing in 2012 — claims to be the fifth biggest metallurgical (or coking) coal producer globally in 2017.
Metallurgical coal is a low-ash, low-sulphur and low-phosphorus coal that can be used to produce high-grade coking coal – an essential part of the steelmaking process.
But even the positive outlook for metallurgical coal demand has not helped stop Coronado losing nearly 18 per cent since it lit up the boards in October.
Fewer than 30 per cent of the 120 or so companies that have listed in the past year are trading above their issue prices.
>> Scroll down for a list of ASX IPOs from the past year or so, showing how they’ve performed since their debut
Kiwi soil tech business CropLogic (ASX:CLI) is still at the bottom of the list since its debut in September last year, wiping off nearly 87 per cent to trade at 2.7c.
Online share registry venture Registry Direct (ASX:RD1) has also failed to impress, sliding nearly 85 per cent to 3.1c.
Registry Direct targets public listed and unlisted companies, in a bid to nibble away at the market share of industry behemoths Computershare and Link Market Services.
The company’s chairman, Donald McLay, recently sold down his stake by a little over 2 per cent, pocketing $105,000 from the off-market sale.
Platinum explorer Podium Minerals (ASX:POD) and gold explorer Riversgold (ASX:RGL) have both tumbled around 62 per cent to trade at 7.5c and 7.6c respectively.
Podium, which listed in February, recently delivered a maiden resource for its Parks Reef project, but the news failed to excite investors.
The project hosts 340,000 ounces of combined platinum, palladium and gold, 14,300 tonnes of copper, and 11,400 tonnes of nickel.
Riversgold listed in October last year and is exploring for gold in Australia and Alaska.
Cyber security company WhiteHawk (ASX:WHK) is also struggling to gain traction despite recently being named the US government’s new cyber risk consultant.
WhiteHawk’s share price has dived 59 per cent to 8.2c since it listed in January.
The company is a cloud-based cyber security exchange platform that offers virtual consultations.
Business software maker Cape Range (ASX:CAG) is still the top performing IPO, becoming a 10-bagger since it listed in late November last year.
After doing nothing following its debut at 20c, the stock suddenly took off at the start of July and landed itself a please explain from the ASX over the sudden share price spike that eventually took it to a new high of $2.25.
It is currently trading at $2.06.
3D printer Titomic (ASX:TTT) is also still enjoying massive gains, having advanced nearly 840 per cent since its debut in September last year.
Titomic listed after a $6.5m IPO with a vision to build the world’s biggest and fastest metal 3D printer.
It launched that printer in Melbourne in May. Titomic was last trading around $1.88.
China-focused retailer AuMake International (ASX:AU8) has rallied 250 per cent since its October 2017 debut.
AuMake posted increased sales and profit for the September quarter ahead of its launch into the milk formula market, expected later this year.
The company booked $10.1m in sales, up 43 per cent on the June quarter, and made gross profit of $1.8m, up 63pc on June’s $1.1m.
AuMake was last trading at about 28c.
Tando Resources (ASX:TNO), meanwhile, has advanced 167 per cent (it recently underwent a 4.62-for-1 share split) and is trading at about 11.5c.
The company, which made its ASX debut in November last year, is advancing its SPD project in South Africa towards a maiden JORC resource.
JORC refers to the mining industry’s official code for reporting exploration results, mineral resources and ore reserves, managed by the Australasian Joint Ore Reserves Committee.
Vanadium prices recently hit their highest point since 2005, punching through the $US20 ($27.73) per pound mark in September and have since rocketed past $US30 per pound — a 300 per cent increase just this year.
Gold play Saturn Metals (ASX:STN) is ahead 30 per cent since it lit up the boards and is trading around 26c.
Saturn, which was spun out of NSW-focused base metals explorer Peel Mining (ASX:PEX), listed in March after raising $7m in a heavily oversubscribed IPO.
The company is working to deliver a resource upgrade for its Apollo Hill gold project near Leonora in Western Australia.
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Perth-based gold and lithium explorer Golden State Mining is set to ring the bell on Thursday, November 8 at 2pm AEDT.
The company announced on Tuesday it had been admitted to the “Official List” after raising around $4.6 million in its IPO.
EMvision Medical Devices has launched an IPO to raise up to $6m via the issue of shares at 25c each.
The company is developing medical imaging technology that utilises electromagnetic microwave energy to create images of the human brain and other organs.
Once its IPO is completed, which is penned in for November 14, EMvision will acquire the intellectual property to develop and commercialise the technology.
The company’s initial focus is neurological conditions, specifically stroke care due to the clinical need and potentially large commercial opportunity.
EMvision is aiming to list by the end of November under the ticker “EMV”.
Gold and copper play Norwest Minerals, which is aiming for a November 29 debut, just needs to get its spread of retail investors and looks set to close its IPO earlier than the mid-November deadline.
The company, which was spun out of battery metals-focused Australian Mines (ASX:AUZ), has already got its quota of institutional investors for its $6.6m IPO, which is being managed by Terrain Capital.
“It’s scheduled to close on the 15th of November, but I think we’re likely to close early with the rate at which subscribers are coming on to get the spread that we need,” Terrain Capital director Dominic Marinelli told Stockhead recently.
Cowan Lithium has extended the closing date of its $8m IPO until November 8 and is aiming to list by November 21.
The Perth-based company, which was spun out of Tawana Resources (ASX:TAW) earlier this year, has two main lithium projects, Cowan and Yallari, in the Eastern Goldfields of Western Australia plus an iron ore project in Liberia.
Perth-based gold and base metals explorer Caprice Resources is also delayed in making its ASX debut.
The company had been targeting a September listing on the back of $4.5m IPO, but has pushed the expected date to November 20.
Caprice has two projects in the Northern Territory and Western Australia.
Titanium Sands has raised the $6.6m it was targeting to relist on the ASX.
The explorer has been trying to relist since early April.
Earlier this year, Titanium Sands struck a deal to acquire Srinel Holdings Limited, which owns a high-grade ilmenite-leucoxene project on Mannar Island in northwest Sri Lanka.
Ilmenite is the main source of titanium dioxide (TiO2), which is used in paints, fabrics, plastics, paper, sunscreen, food and cosmetics.
Leucoxene is a fine, granular alteration product of titanium minerals. Although it is not a recognised mineral species, the name leucoxene has been applied to products with a TiO2 titanium content ranging from 70 per cent to 93 per cent.
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