The Australian IPO market has been hit by geopolitical tensions and challenging capital market conditions.
The companies have raised nearly AU$800 million on a YTD basis.
Mining and energy mainly dragged down the Australian share market so far this year.
Australia’s initial public offering (IPO) sector has seen relatively lukewarm activity so far this year. Geopolitical instability and challenging capital market conditions can be attributed as the major reasons behind this muted performance. The companies have raised nearly AU$800 million on a year-to-date (YTD) basis compared to nearly AU$3 billion in the first half of the last year.
“While we usually see more listings in the second half of the year than the first half, as companies sign off their June 30 accounts for inclusion in prospectuses, at this stage it seems unlikely that the IPO market in 2022 will come anywhere near the amounts raised, or number of listings, that we saw last year,” said Marcus Ohm, author of HLB Mann Judd IPO Watch Australia mid-year report released earlier this week.
The only exception is the resources sector, which represents 44 of 59 IPO listings this year. Mining and energy are the two sectors which have mainly dragged down the Australian share market so far this year.
On this note, let’s look at two companies which are planning to list their IPOs on the ASX next week.
Australia Sunny Glass Group Ltd (ASX:AG1)
Australia Sunny Glass Group is focused on glass production and supply business.
The company had undertaken an AU$7.5-million public offering at an issue price of AU$0.35. According to the ASX data, the company is set to list on the exchange on 26 July 2022 at 11 AM (AEST).
The IPO is partially underwritten, and the company has appointed Townshend Capital Pty Ltd as its lead manager.
Octava Minerals Ltd (ASX:OCT)
Octava Minerals is a mineral exploration firm focused on lithium and gold. The company’s flagship project is the East Pilbara Talga project.
Octava Minerals had undertaken an AU$6 million public offering at AU$0.20 issue price. Octava Minerals plans to list on the ASX on 1 August 2022, according to the latest data by ASX.
The company had appointed Bell Potter Securities Ltd as its lead manager.
According to the company, the purpose of the equity offer was to complete the acquisitions of the interests forming the projects, provide Octava with funding to systematically undertake the exploration and evaluation of the projects and provide working capital for the company.
- ASX codes are proposed only and may change without notice.
- Listing dates are proposed dates for the first quotation of securities set out in the entity's prospectus or information memorandum.
- Listing dates are expected dates for the first quotation of securities set by the ASX after the completion of admission procedures. These could change without any notice.