IPO INCREASE FOR 2010

Written on the 16 February 2010

IPO INCREASE FOR 2010

A STUDY by HLB Mann Judd shows IPO activity narrowly averted a 10-year low in 2009, but a bounce back looks likely in 2010 as investor appetite grows.

The Small Cap IPO Watch found that total amounts raised by small cap listings were down 43 per cent on 2008, with the number of large cap listings down 57 per cent.

But report author Geoff Webster says the November listing of Myer Holdings Limited (MYR) gave a large boost to the total funds raised, accounting for 74 per cent at $2.2 billion.

“The remaining 38 (large cap) listings raised just $0.765 billion between them, down three percent on 2008 and 91 percent on 2007 levels,” says Webster.

“The global financial crisis brought fund-raising to a near standstill for the majority of the last two years.”

He says a positive sign for investors is that the majority of 2009 listings recorded gains on their issue prices.

“Between them, the top 10 performing companies returned a healthy average year end return of 81 per cent (2008: -12 per cent). Returns from the 10 best performing companies ranged from +275 per cent to +50 per cent (2008: +110 per cent to -40 per cent).”

The report cited 16 companies that have already applied to the ASX for listings, which would equal 41 per cent of total 2009 floats. The majority of the $288 million in capital sought has come from Western Australian company Q Copper Ltd.

“While the last 18 months have been difficult for many, clever businesses have utilised the time whilst the IPO market has been largely shut down to ensure they are ready to list once the appetite for IPOs returns,” says Webster.


Latest News

2017 BRISBANE TOP COMPANIES REVEALED

WHILE Queensland is regarded as an economy in transition with the winding down of the mining boom, the 2017 top 50...

2017 BRISBANE TOP COMPANIES 1-10

FROM insurance and banking to travel, gambling, retail, property and pizza, these "heavyweights" have ha...

2017 BRISBANE TOP COMPANIES 11-20

RETAIL, property, an airline, cars, real estate, software services, energy, agriculture, veterinary services bathr...

2017 BRISBANE TOP COMPANIES 21-30

JEWELLERS Michael Hill International listed in 2016 with a half-billion dollar market capitalisation and a new CEO...

Related News

FURNITURE DISRUPTOR SET TO SHARE HIS ONE OF A KIND BUSINESS MODEL

IT'S no secret that Australians love homemaking. Their ceaseless quest to create the perfect place to call hom...

WEEDING OUT THE ASX'S BURGEONING CANNABIS TREND: 8 COMPANIES TO WATCH

A NICHE is budding on the ASX in the form of medical cannabis, an industry which has been on the country's rad...

FRESH CLASS ACTION TO REVEAL ANOTHER SIDE OF SLATER AND GORDON DOWNFALL

ACA LAWYERS has issued a formal letter of demand to Andrew Grech (pictured), managing director of Slater and Gordo...

STARSHIPS WERE MEANT TO DELIVER DOMINO'S PIZZA

NICKI Minaj may have been off the mark when she declared 'starships were meant to fly'. However, she m...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter