More than 30 companies have already applied to list on the Australian Securities Exchange (ASX) in 2018, hoping to raise a total of around $600m in capital by initial public offerings (IPO).
Materials and technology stocks make up the bulk of proposed listings so far this year.
Eagle Mountain Mining, a minerals explorer with a focus on copper and gold, is hoping to raise more than $8m on its proposed listing date1 of 9 March.
Saturn Metals is a gold explorer hoping to raise as much as $7m at its IPO proposed for 15 March and Universal Biosecurity wants to raise $5m from its IPO proposed for 10 April to help it commercially develop its fumigation technology.
Keep in mind that listing dates are proposed only and are subject to change without notice. You can check the ASX website for any updates.
What happened in 2017?
The materials sector recorded the largest number of listings in 2017, with 29 of the total 110 IPOs completed on the ASX, according to research by Marcus Ohm, Corporate and Audit Services partner at accountants and business advisers HLB Mann Judd.
In 2017, those 110 IPOs raised a total $4.1bn, which was significantly down on the $7.5bn raised in 2016, according to HLB Mann Judd's IPO Watch Report 20182.
The biggest differentiator in 2017 was the absence of large companies listing with market capitalisations in excess of $1bn, Ohm said in the report.
Small cap companies made up the bulk of IPOs on the ASX last year – 88 of the 110 total. The small cap listings came predominately from the materials sector and raised a total $1.1bn, compared with 64 in 2016 that raised $828.5m.
For the purpose of its report, HLB Mann Judd defined a “small cap” company as one with a market capitalisation of no more than $100m, based on the price at which new securities were issued.
New listings significantly outperformed the wider market in 2017 in terms of year-end share price gains.
The average increase in share price was 46% across all new IPOs and 56% in the small cap sector, HLB Mann Judd said in its report. In comparison the ASX 200 had gains of around 7% in the 2017 calendar year.
While 63%, or 69, of all IPOs ended their first day above their listing price in 2017, 44 of the 110 listings ended 2017 in negative territory, and of these, 25 recorded decreases of 25% or more.
1. Listing dates are proposed or anticipated dates. The ASX advises you should not rely on this information in any way. https://www.asx.com.au/prices/upcoming.htm
2. IPO Watch Report 2018, HLB Mann Judd, released 30 January, 2018. Retrieved from http://www.hlb.com.au/Media-Resource-Centre/Publications/National/IPO-Watch-Australia-2018