October ASX floats – what went up and what went down
Just over half of companies that debuted on the ASX last month — 6 out of 11 — are trading above water.
Queensland gas explorer State Gas (ASX:GAS) and builder Johns Lyng Group (ASX:JLG) are trading above their issue prices after initial public offerings.
Plant-free fabric-maker Nanollose (ASX:NC6) is flat.
Cannpal (ASX:CP1) was a surprise disappointment. It listed at 20c and hasn’t managed to climb above that.
Byrah Resources (ASX:BYH), the GO2 People (ASX:GO2) and Riversgold (ASX:RGL) are also underwater.
Arthur Austin Advisory investment manager Chris Robertson says there have been a lot of capital raisings recently and the market could be getting a little tired.
“There has been a lot of stuff come to market… there’s only a certain amount of capital that people have got to put into these sorts of deals.”
Success for reverse takeovers
On the stats alone, reverse takeovers have fared well .
In October, Bowen Coking Coal, Aumake International, Mobecom, Santa Fe Minerals, SenSen and Schrole backdoor listed, according to the ASX.
Mobecom (ASX:MBM) was up 177 per cent on its issue price, closely followed by Aumake International (ASX:AU8) at 169 per cent. Santa Fe Minerals was at the back of the pack but still managed to trade 20 per cent above its issue price.
Armytage Privates’ Lee IaFraté says this could be because the share register of a company that is backdoor listing tends to be “more disciplined, more attuned to the company’s fortunes”, whereas an IPO tends to include more investors looking for a quick profit.
Mr IaFraté says the October results are a combination of the quality of the companies and the market.
“As we are drawing to the end of the calendar year, this is harsh, but the quality of capital raisings and listings does drop off,” he told Stockhead.
“The markets worldwide have had very stellar rises. The earnings outlook for Australia is well priced: not expensive, but it’s not cheap.
Superstar September listings
The IPOs in September performed better than those last month.
Of eight companies that IPO’d in september (not including seven funds that listed), only Croplogic is down — 40 per cent lower than its 20c issue price.
Titomic is up 253 per cent, dwarfing Northern Cobalt which is also up 115 per cent since it listed.
The ASX said 13 companies and funds listed in October (it doesn’t include reverse takeovers in that) compared to 14 in the same month last year.
Tando gets November off to a good start
Of this month’s floats, Tando Resources is up 75 per cent on its issue price at 35c. On debut it more than doubled.
TNT Mines is still up 20 per cent but Registry Direct is down by the same value and hasn’t moved past its 20c issue price.