- More than 120 IPOs listed on the ASX this year, the highest since 2007.
- US fund manager GQG Partners and retail lender Judo Bank launched mega public offerings this month.
- Aurum Resources, Dragonfly Biosciences, Star Minerals, and RAM Essential Services Property Fund to list on the ASX next week.
This year has been very hectic for the Australian IPO market, with more than 120 companies making their debut on the ASX so far, which is the most since 136 listings in 2007. The list is only going to get longer as many companies are in queue to get listed on the Australian Securities Exchange.
Two mega initial public offerings have been announced this month, including AU$1.2-billion offering by US fund manager, GQG Partners. This is touted to be the country’s largest public offering this year after online property company PEXA Group, which raised AU$1.18 billion in its IPO.
Judo Bank, which provides lending to small- and medium-sized businesses, has also announced to raise around AU$653 million in its IPO. The Australian neo lender plans to sell close to 311.1 million shares for AU$2.1 per share, at a market valuation of AU$2.3 billion, as per reports.
GQG and Judo listings would boost the amount raised in Australian IPOs this year to AU$8.7 billion, the highest since the record-setting AU$18.5 billion raised in 2014. The hotly anticipated IPOs come amid record-low borrowing rates and favourable market conditions.
This month six companies have already commenced trading on the domestic bourse, while many more are lined up to join the ASX. The list includes Aurum Resources, Dragonfly Biosciences, Star Minerals, and RAM Essential Services Property Fund.
Let’s talk about the IPOs that are going to be listed on the ASX next week.
Image source: DenPhotos, Shutterstock.com
Minerals explorer Aurum Resources (ASX: AUE) is expected to commence trading on the Australian Securities Exchange (ASX) on 18 October, under the ticker name “AUE”. The company looked to raise AU$5 million at an offer price of 20 cents a share in its initial public offering (IPO). The date and price may change, subject to market conditions.
Xcel Capital was appointed as lead manager for the IPO, which opened for subscription between 31 August and 28 September 2021. The company was formed after Alidoro Resources (ASX:ARN) spin-out its wholly owned subsidiary Aurum Resources to facilitate the fast-tracking of exploration and possible development of the projects in Western Australian gold projects.
Shares of Dragonfly Biosciences (ASX: DRF), a leading retailer of Cannabidiol (CBD), is pegged to begin trading publicly on the ASX on 20 October 2021. The company had looked to raise AU$10 million at 20 cents a share in its initial public offering (IPO). Finexia Securities acted as the lead manager to the IPO.
Europe’s leading premium retailer of CBD, Dragonfly, controls the process from seed to sale, guaranteeing the highest and most consistent product quality. It currently offers a range of CBD health and lifestyle products.
Perth-based gold miner Star Minerals (ASX: SMS) is slated to join the ASX on 18 October. The mining and exploration company looked to raise AU$5 million at 20 cents a share in its initial public offering.
Sydney-based Magnolia Capital Group has pledged to invest AU$2.5 million under the offering, which amounts to half of the total capital raise. The company will use IPO proceeds to fund the development of the advanced Tumblegum South gold project.
RAM Essential Services Property Fund
Australian Real Estate Investment Trust RAM Essential Services Property Fund (ASX: REP) will be listed on the ASX on 20 October. The company looked to raise AU$356.9 million in its initial public offering, which is going to be the second-biggest real estate IPO of the year.
Funds raised at the IPO would be used to repay some existing investors, acquire additional properties, pay transaction costs and repay existing bank debt. The company invests in high quality Australian medical and essential retail real estate assets, leased to essential services tenants.