Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

IPOs deliver strong returns for investors

Australian initial public offerings have experienced strong performance, with the average return of the 21 companies listed in the second quarter at 33.5 per cent, according to a stock exchange platform.

A report from OnMarket BookBuilds revealed the average return from the 34 companies which listed on the ASX by June 2016 was 23.3 per cent, compared to the 6.5 per cent return for IPOs in the same period last year.

“The number of companies floating is also well up on the 27 who floated in the first half of 2015,” the report said.

The strongest performing IPOs over the period were Abundant Produce, up 370 per cent; Graphex Mining, up 160 per cent and ApplyDirect, up 70 per cent.

Advertisement
Advertisement

“Among larger IPOs, software company WiseTech Global had jumped 32.2 per cent by June 30 after listing on April 11 and plumbing manufacturer Reliance Worldwide Corporation was up 23.6 per cent by June 30 following an April 29 listing,” the report said.

OnMarket BookBuilds chief executive Ben Bucknell said the report showed how investors could benefit from having a handful of IPO investments.

“So long as you have a broad exposure, you can maximise the chances of achieving the sorts of returns we’ve seen so far this year,” he said.

IPOs deliver strong returns for investors
nestegg logo
subscribe to our newsletter sign up
FROM THE WEB
Recommended by Spike Native Network
Anonymous - There are so many crackdowns by the ATO it’s a wonder that anyone has enough unbroken bones on which to walk.....
Anonymous - Low as in a new low for scoundrels depleting your savings?....
Bronson - I love you Brenton please write more....
The Patriot - It seems madness to lower interest rates when we know that we will need room to drop later as the economy slows on back of China slowing. If wages do.......