Powered by MOMENTUM MEDIA
moneymanagement logo
 
 

H1 sees $2.9b raised in IPOs

HLB-Mann-Judd/IPO/Marcus-Ohm/

22 July 2021
| By Laura Dew |
image
image image
expand image

Strong investor sentiment and positive macroeconomic conditions saw the volume of initial public offerings (IPOs) rise to 61 in the first half of 2021.

According to the latest ‘IPO Watch Australia Mid-Year Report’ from HLB Mann Judd, 61 companies which listed on the Australian Securities Exchange (ASX) raised $2.9 billion in the first half of the year.

This was a significant jump from 12 listings in the first half of 2020 which raised a total of $132 million.

The jump in assets raised was driven by the 13 large-cap firms which listed during the period compared to just one in the previous first half.

There was a particular dominance by the materials sector which accounted for over half of all IPOs thanks to 26 small-cap listings and five large-cap ones which raised $648.8 million. Following materials, the best-represented sectors were banks, and healthcare equipment and services.

Companies which met their subscription targets, some 87% of IPOs, tended to significantly outperform with those seeing full subscription recording an average of 25% in first-day gains. On the other hand, companies which failed to meet their target saw an average first-day loss of 7%.

Marcus Ohm, partner at HLB Mann Judd Perth, said: “IPO activity was driven by favourable macroeconomic and capital market conditions, combined with strong investor sentiment which reflected the strength of the market as a whole.

“Compared to the wider market, however, IPO performance has been more subdued with a 6% average gain for all listings in the first half of the year, as opposed to an ASX All Ordinaries Index gain of 11%. Despite this, there were still many strong individual performers, with 26% of new listings recording a gain of 20% or more by period end.”

Looking into the second half of the year, Ohm said there were a further 42 proposed listings in the pipeline which were looking to raise $1.25 billion across nine different sectors. Exploration and mining companies had the most IPOs forecast at 27.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Significant ethical issues there. If a relationship is in the process of breaking down then both parties are likely to b...

6 days 17 hours ago

It's not licensees not putting them on, it's small businesses (that are licensed) that cannot afford to put them on. The...

1 week 6 days ago

So we are now underwriting criminal scams?...

6 months 2 weeks ago

After last month’s surprise hold, the Reserve Bank of Australia has announced its latest interest rate decision....

1 week 1 day ago

Libby Roy has been appointed as an independent non-executive director on the board of AZ NGA....

4 weeks 1 day ago

A professional year supervisor has been banned for five years after advice provided by his provisional relevant provider was deemed to be inappropriate, the first time th...

3 weeks ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
74.26 3 y p.a(%)
3