IPO’s (Initial Public Offering) as the name suggest is the beginning of the first sale of a company’s share to public. The company becomes the issuer in this case and works with an underwriter or multiple underwriters to conduct the process of listing the IPO. There are few companies that have been lately listed on the ASX or are about to get listed and below is an enlisting of the same.
Alliance Mineral Assets Limited (ASX: A40) – The company lately announced the proposed merger of equals with Tawana Resources NL in a scheme under Australian Corporations Act 2001. The Company is offering up to 1,000 Shares at an issue price of $0.35 each to raise up to $350 accordingly, the purpose of the Offer is not to raise funds. Battery applications are expected to drive growth for lithium consumption in the foreseeable future. However, there are risks of future capital requirements and dependency on the Bald Hill Project for all operating revenue along with development risk.
AXS Group Limited (ASX: AXS) – The company is acquiring Axcess Consulting Group Pty Ltd which has been appointed by Industrial Alliance Insurance and Financial Services in Canada to support its group and independent advisor network across Canada for lending services its ARMnet software as its primary software provider. The company has strong organic growth in existing product segments expansion of group’s business across border and through synergistic acquisitions. However, there is a lot of reliance in key personnel and risk of significant control by existing shareholders.
Cadence Opportunities Fund Limited (ASX: CDO) – The company is seeking to obtain a listing on the ASX and to raise up to $100,000,000 (before Oversubscriptions) under its initial public offer of ordinary shares in the Company (Offer). The Board may accept an additional $100,000,000 in oversubscriptions. However, the Offer is open to investors with a registered address only in Australia. The Company has been set up to deliver risk adjusted returns through investment cycles.
Caprice Resources Ltd (ASX: CRS) - To raise approximately A$4,500,000 (before costs) the offer of up to 22,500,000 fully paid ordinary shares has been lodged by the company. The Company's performance in any future period cannot be reliably estimated in light of uncertainty as to timing and outcome of the Company's growth strategies and the general nature of the industry in which the Company will operate. However, the company has a limited operational and financial history as it was incorporated in March 2018.
China Track Limited (ASX: CTC) - China Track is to further increase its current sales (1% of the Group’s total sales only) to the Australian market. To acquire Shares in China Track Limited, there are plans to list the company on the ASX. It has experienced management team, low price advantage, high quality standards, geographical advantage and increasing working capital. However, there are risk of price fluctuations of raw materials, reliance on key customers and customer orders, quality control of the products and relationship with suppliers.
Cowan Lithium Limited (ASX: COW) - To raise up to $8,000,000 before costs, with a minimum subscription requirement to raise at least $6,000,000 before costs, the Company is offering up to 40,000,000 Shares at an issue price of $0.20 each. The company is set to accelerate its exploration plans while also enabling identification and assessment of additional growth project. However, restricted securities reducing liquidity and limited history are the risks with the reliance on key personnel.
Exopharm Limited (ASX: EX1) – The company has received a firm allocation of New Shares from the Lead Manager or their Participating Broker, of up to 30,000,000 New Shares to raise approximately $6,000,000 (before costs), with the ability to accept oversubscriptions of up to an additional 5,000,000 New Shares to raise an additional $1,000,000 (before costs). The company is solving the manufacturing bottleneck with experienced and class management team. However, there are technology risks and there are future capital requirements.
Fiji Kava Limited (ASX: FIJ) – It is set to be Listed on the Australian Stock Exchange (ASX) in December 2018. The Company invites applications for 26,000,000 Shares at an issue price of $0.20 per Share to raise $5,200,000 the Shares offered under this Prospectus will rank equally with the existing Shares on issue. In consideration for the acquisition by the Company of all of the shares in SPE Singapore it also includes an offer of 29,000,000 Shares to the Vendors. However, the market access and product acceptance remain a key risk. There is reliance on contractors and enough competition from substitutes of Kava.
Heartland Group Holdings Limited (ASX: HGH) – It was already listed on November 1, 2011 and has achieved strong growth and momentum with its high-quality portfolio.
HeraMED Limited (ASX: HMD) – The company is set to raise up to with a minimum subscription requirement of $5,000,000 for the offer of up to 30,000,000 Share. There are increasing initiatives from government and non-government bodies on increasing maternal age and rise in premature birth spurring the demand for better tools and technologies. However, there is no existing market and no large-scale manufacturing, and it is an early stage business which poses some risk to them.
Table: 10 IPO’s with their listing information
|Serial No.||Proposed Listing Time||Company Name||Proposed Codes||Proposed Listing Dates||Offer Prices|
|1||1:00PM AEDT||Alliance Mineral Assets Limited||ASX: A40||5 December 2018||A$0.35|
|2||TBA||AXS Group Limited||ASX: AXS||TBA||A$0.25|
|3||5:00 PM (AEDT)||Cadence Opportunities Fund Limited||ASX: CDO||20 December 2018||A$1.25|
|4||2:00PM AEDT||Caprice Resources Ltd||ASX: CRS||5 December 2018||A$0.20|
|5||TBA||China Track Limited||ASX: CTC||TBA||A$0.80|
|6||TBA||Cowan Lithium Limited||ASX: COW||TBA||A$0.20|
|7||TBA||Exopharm Limited||ASX: EX1||19 December 2018||A$0.20|
|8||TBA||Fiji Kava Limited||ASX: FIJ||TBA||A$0.20|
|9||Listed||Heartland Group Holdings Limited||ASX: HGH||Listed||A$1.40|
|10||Listed||HeraMED Limited||ASX: HMD||4 December 2018||A$0.20|
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