Invest
Strong investment growth possible despite slowing IPOs
A relatively low number of initial public offerings hitting the market in the first half of 2019 has not stalled opportunities for strong gains by investors.
Strong investment growth possible despite slowing IPOs
A relatively low number of initial public offerings hitting the market in the first half of 2019 has not stalled opportunities for strong gains by investors.
At an IPO watch update, HLB Mann Judd outlined that only 23 companies had listed in the first half of this year, which it attributed to 2018 equity market conditions and a fall in the number of material companies.
According to the accounting firm, from a share price perspective, 2019’s IPOs have performed strongly, with 17 of the 23 IPOs recording first day gains averaging out at 21 per cent.
All of those companies have continued to grow post-float, with an average gain of 62 per cent witnessed across the board.
As well as providing stronger returns for investors, the IPOs themselves have seen stronger subscription numbers in the first six months of 2019 when compared to the same time period last year.
It was highlighted that 19 of the 23 IPOs met their subscription targets compared with 74 per cent the year before.
Commenting on the half-yearly figures, HLB Mann Judd partner Marcus Ohm said, “This is a particular good result and represents a return to the trend of IPOs tending to outperform the market which has itself had a good six months.”
He did concede that despite positive growth, the sector as a whole has seen “significantly reduced” activity in terms of companies listed and money invested.
“A total of $823 million was raised during the first half of this year, which is significantly down on the previous two years with $2.5 billion and $1.9 billion being raised in the first half of 2018 and 2017, respectively,” Mr Ohm stated.
He also flagged the lower number of IPOs as attributable to less movement in the materials industry.
“Materials had only three new listings for the period, compared with 16 for the same period last year,” he noted, calling out the reduced activity as reflective of broader macroeconomics issues and current investor sentiment.
RELATED ARTICLES
About the author
About the author
Stock market
Westpac and CMC Markets strengthen partnership to enhance online trading services
In a significant move that underscores the evolving landscape of online trading in Australia, CMC Markets Stockbroking has been chosen as the preferred vendor by Westpac Banking Corporation to extend ...Read more
Stock market
Portfolio reviews as an operating discipline: turning volatility into a competitive edge
In a higher-rate, higher-volatility world, portfolio reviews are no longer an annual hygiene task; they’re a core operating rhythm that protects cash flow, unlocks tax alpha, and sharpens risk ...Read more
Stock market
Fee war on the ASX: Global X’s A300 turns up the heat on core Aussie equity ETFs
Global X has lobbed a 0.04% management fee into Australia’s core equity sandbox, launching the Australia 300 ETF (A300) to take on entrenched giants. Read more
Stock market
Challenger IM shakes up the ASX with private credit note and a side of risk
Challenger Investment Management has taken private credit mainstream with an ASX-listed note structure—LiFTs—that secured roughly $100 million in cornerstone commitments within a day of launch. Read more
Stock market
International stocks: Diversifying your portfolio beyond Australia
In an increasingly globalized market, Australian investors have the opportunity to enhance their investment portfolio by incorporating international stocks. Diversifying your investments globally can ...Read more
Stock market
Stock market rally likely to continue regardless of Fed minutes tone, says deVere CEO
The bull run that has propelled Wall Street's major indexes to record highs this month is expected to continue regardless of the tone of the upcoming Federal Reserve minutes, according to Nigel Green, ...Read more
Stock market
US stock rally driven more by valuation growth than earnings, leaving tech names vulnerable: Innova
The strong gains in US stocks over the past year, particularly in the technology sector, have been driven more by expanding valuations than underlying earnings growth, leaving them exposed to a ...Read more
Stock market
Sun Silver to make its ASX debut with a $13 million IPO
Sun Silver Limited (proposed ASX Code: "SS1") has announced the opening of its Initial Public Offering (IPO) today, aiming to raise a minimum of $10 million and a maximum of $13 million (before costs)Read more
Stock market
Westpac and CMC Markets strengthen partnership to enhance online trading services
In a significant move that underscores the evolving landscape of online trading in Australia, CMC Markets Stockbroking has been chosen as the preferred vendor by Westpac Banking Corporation to extend ...Read more
Stock market
Portfolio reviews as an operating discipline: turning volatility into a competitive edge
In a higher-rate, higher-volatility world, portfolio reviews are no longer an annual hygiene task; they’re a core operating rhythm that protects cash flow, unlocks tax alpha, and sharpens risk ...Read more
Stock market
Fee war on the ASX: Global X’s A300 turns up the heat on core Aussie equity ETFs
Global X has lobbed a 0.04% management fee into Australia’s core equity sandbox, launching the Australia 300 ETF (A300) to take on entrenched giants. Read more
Stock market
Challenger IM shakes up the ASX with private credit note and a side of risk
Challenger Investment Management has taken private credit mainstream with an ASX-listed note structure—LiFTs—that secured roughly $100 million in cornerstone commitments within a day of launch. Read more
Stock market
International stocks: Diversifying your portfolio beyond Australia
In an increasingly globalized market, Australian investors have the opportunity to enhance their investment portfolio by incorporating international stocks. Diversifying your investments globally can ...Read more
Stock market
Stock market rally likely to continue regardless of Fed minutes tone, says deVere CEO
The bull run that has propelled Wall Street's major indexes to record highs this month is expected to continue regardless of the tone of the upcoming Federal Reserve minutes, according to Nigel Green, ...Read more
Stock market
US stock rally driven more by valuation growth than earnings, leaving tech names vulnerable: Innova
The strong gains in US stocks over the past year, particularly in the technology sector, have been driven more by expanding valuations than underlying earnings growth, leaving them exposed to a ...Read more
Stock market
Sun Silver to make its ASX debut with a $13 million IPO
Sun Silver Limited (proposed ASX Code: "SS1") has announced the opening of its Initial Public Offering (IPO) today, aiming to raise a minimum of $10 million and a maximum of $13 million (before costs)Read more
