Home / News / Billion-dollar game – IPO parade not slowing down

Billion-dollar game – IPO parade not slowing down


Strong momentum in the IPO market has continued unabated, with 61 new listings in the first half, according to the latest IPO Watch Australia Mid-Year Report issued by HLB Mann Judd.

  • Marcus Ohm, partner in the firm’s corporate and audit services division, highlights that there was a significant increase from 12 listings for the same period in 2020, which “was heavily impacted by market falls during the early stages of the COVID-19 pandemic.” The strong performance was clearly shown from the $2.9 billion raised, in comparison to the $132 million in the first half of 2020. The big jump in raisings was driven by 13 additional ‘larger’ listings that were above $100 million in size. In the June quarter alone, 39 of the 61 listings occurred, with nine large caps.

    Ohm attributes the increase in activity to “favourable macro-economic and capital market conditions together with strong investor sentiment and reflected the strength of the market as a whole with the S&P/ASX All Ordinaries index growing by 11% over the six-month period.” Also, it is worth noting that the small-cap sector contributed, with 48 new listings for the period raising a total of $462 million, with the Materials sector doing well. It had 26 new small-cap listings compared to only three in the comparative period in 2020. What was interesting is that there were five out of thirteen large-cap IPOs in 2021, when usually, Materials listings are small caps.

    Outside of the Materials sector, which had 51% of all new floats, other industries also performed well, says Ohm. Retailing and Pharmaceuticals, Biotechnology & Life Sciences sectors had four new listings each during the period, while Software & Services, which historically has been a strong IPO sector in terms of volume only, had three new entrants during this period raising a combined $31 million.”

    According to the report the average first-day gain across all new listings was 21% and the average period-end gain was 6%. The strongest performers in terms of share price included Firebird Metals Limited (ASX: FRB, 208% gain) and Pentanet Limited (ASX: 5GG, 170% gain). This period has also seen five foreign listings (2020: two), including Keypath Education International Inc (ASX: KED) and Chimeric Therapeutics Limited (ASX: CHM). which both have US-based operations.”

    In summary, Ohm says the new listings pipeline is “looking very healthy with 42 upcoming floats preparing to list and seeking to raise a further $1.25 billion.”

    Print Article

    Seniors Dental Benefit Scheme should be a priority: COTA

    Despite a royal commission putting seniors’ dental health on the political agenda, it remains stillborn. Meanwhile, the high cost of dental care means many are either delaying or totally avoiding getting treatment.

    Nicholas Way | 10th Jul 2024 | More
    Rising cost of private health cover key concern: National Seniors Association

    Older Australians who can afford their health insurance cling to it – despite the rising cost of premiums, out-of-pocket expenses and increasing difficulty in navigating the system.

    Nicholas Way | 26th Jun 2024 | More
    The bank of mom and dad taking tougher line on credit

    AMP research finds baby boomers reluctant to sacrifice their living standards to bankroll their offspring into housing. But they (happily) let them keep living at home and paying their bills.

    Tahn Sharpe | 5th Jun 2024 | More