
Most read
Pros and cons: Working in the gig economy...
Pros and cons: Working in the gig economy...

Latest Podcast
Is the market overheating; should ETFs take your fancy, and what’s happening t...
Is the market overheating; should ETFs take your fancy, and what’s happening t...

Resources
There is $17.5 billion in lost and unclaimed super across ...
There is $17.5 billion in lost and unclaimed super across ...
Invest
IPOs halve but profits retain market beating
The number of Australian companies that have floated in the first half of 2020 halved year-on-year, as companies withdraw due to COVID-19 volatility, industry experts have explained.

IPOs halve but profits retain market beating
The number of Australian companies that have floated in the first half of 2020 halved year-on-year, as companies withdraw due to COVID-19 volatility, industry experts have explained.

The latest HLB Mann Judd’s IPO Watch Australia Mid-Year report has noted that there have been 12 new listings this year compared with 23 in the first six months of 2019 and the five-year average of 34.
During the June quarter, only three listings took place – with the majority of IPOs and fundraisings occurring in the first quarter. Around $87.5 million was raised in the first three months of the year, in contrast to $44.5 million in the second quarter.
The funds raised were soft compared with the previous year’s $823 million or 2018’s $2.5 billion, with HLB Mann Judd partner and report author Marcus Ohm noting he couldn’t “remember the last time the funds raised in the IPO market were so low”.
Despite only six sectors being represented, the overall return for IPOs remained high, beating the market by 28 per cent.
The IPO report revealed that technology and minerals were once again stronger performers, with software as a service (SaaS) company being the strongest performer for the period.
“It did have the best-performing company of the period that had a first day gain of 90 per cent, and by the end of the period, up 198 per cent.
“Unfortunately, that skewed our numbers a bit because it was one of 12 companies,” Mr Ohm explained.
While shares in the broader markets have begun recovering from COVID-19 lows, Mr Ohm noted that it is a difficult market conditions that are also reflected in the upcoming pipeline, with only one new listing at the end of June.
Highlighting the difficulties the market is facing, Mr Ohm noted there was only one large cap listing until 30 June, when during the same period last year there had been 10 large-cap.
The majority of listings (11) were from the small-cap sector (less than $100 million market capitalisation at listing), consistent with the year before.
“[Large-cap] listings in particular seem to be a bit of a barometer of the health of the market overall and certainly if you determine the health of the market based on the volume of funds raised,” Mr Ohm said.
“I think the problem with a [large-cap] listing right now, it’s very difficult in an environment where there’s a lot of risk around, there’s a lot of uncertainty around, to go through what is often a very expensive process and to get investors on board to support those for the volume of listings, I think that’s quite a challenging proposition at the moment.”
But the companies that did list were seen to achieve an average gain of 16 per cent, compared with the overall 12 per cent loss of the wider market.
One-third of the new listings recorded a gain of 35 per cent or more by the end of the period.
Mr Ohm added that amid the pandemic, the near-term horizon is difficult to predict.
“The markets have recovered somewhat but there’s no doubt there’s quite a lot of risk and volatility present. That’s generally not a good environment for IPOs,” he concluded.
About the author

About the author


Shares
AMP hits record low
Shares in financial wealth giant AMP have closed at a new record low, following the potential sale of AMP Capital to US-based Ares Management falling through. ...Read more

Shares
Aussie investors flock to social media to learn about trading
Aussie investors are increasingly turning to social media platforms for education on trading, as collaboration and reliance on a community become integral in the way traders learn. ...Read more

Shares
GameStop looks to cash in on surge by selling 3.5m shares
The GameStop saga continues as the retailer moves to capitalise on its newfound fame by offering up for sale 3.5 million of its shares. ...Read more

Shares
Expert warns against media-led stock frenzies as GameStop shares plummet to 7-week low
An expert has urged “extreme caution” when joining social media-led stock frenzies, after GameStop shares were rocked by its less than favourable financial results. ...Read more

Shares
GameStop fails to meet revenue estimates, shares seesaw
GameStop has failed to capitalise on the frenzy around the stock, missing its Q4 estimates, although it reported strong sales in early Q1. ...Read more

Shares
Why CBA’s BNPL launch won’t be the end of Afterpay
The big four bank’s arrival into the buy now, pay later sector is unlikely to have an impact on the established players, with the bank focusing on supply instead of consumer demand, an industry expe...Read more

Shares
How investors can practically incorporate more ESG into their portfolios
Six-year-olds and healthy food can be like mixing water with oil – they don’t really like to party together, and it can be a constant source of frustration. That said, the difference is that you h...Read more

Shares
How will PayPal’s arrival impact BNPL investors?
US payment giant PayPal has announced that it will bring its ‘Pay in 4’ option to the Australian market by June, but is unlikely to impact the BNPL players as much as investors would expect, an in...Read more

Is the market overheating; should ETFs take your fancy, and what’s happening to the low and middle income tax offset?
Listen now

Home values up 30% (or are they); NFTs taking the world by storm, and why Keating thinks Aussies will be ‘poor’ in retirement
Listen now

Raging floods, the tech stock bubble and the ongoing SG debate
Listen now

Meet the Manager with Trilogy’s Philip Ryan: RBA rates and property price growth
Listen now

Shares
AMP hits record low
Shares in financial wealth giant AMP have closed at a new record low, following the potential sale of AMP Capital to US-based Ares Management falling through. ...Read more

Shares
Aussie investors flock to social media to learn about trading
Aussie investors are increasingly turning to social media platforms for education on trading, as collaboration and reliance on a community become integral in the way traders learn. ...Read more

Shares
GameStop looks to cash in on surge by selling 3.5m shares
The GameStop saga continues as the retailer moves to capitalise on its newfound fame by offering up for sale 3.5 million of its shares. ...Read more

Shares
Expert warns against media-led stock frenzies as GameStop shares plummet to 7-week low
An expert has urged “extreme caution” when joining social media-led stock frenzies, after GameStop shares were rocked by its less than favourable financial results. ...Read more

Shares
GameStop fails to meet revenue estimates, shares seesaw
GameStop has failed to capitalise on the frenzy around the stock, missing its Q4 estimates, although it reported strong sales in early Q1. ...Read more

Shares
Why CBA’s BNPL launch won’t be the end of Afterpay
The big four bank’s arrival into the buy now, pay later sector is unlikely to have an impact on the established players, with the bank focusing on supply instead of consumer demand, an industry expe...Read more

Shares
How investors can practically incorporate more ESG into their portfolios
Six-year-olds and healthy food can be like mixing water with oil – they don’t really like to party together, and it can be a constant source of frustration. That said, the difference is that you h...Read more

Shares
How will PayPal’s arrival impact BNPL investors?
US payment giant PayPal has announced that it will bring its ‘Pay in 4’ option to the Australian market by June, but is unlikely to impact the BNPL players as much as investors would expect, an in...Read more