- As many as seven IPOs are set to make debut on ASX during the week ended October 1.
- Overall, 30 companies are lined up to list their shares in the month of September.
- More than half of new listings are from the resources sector.
The recent boom in the Australian initial public offering (IPO) market has companies making a beeline to launch their offers, to cash in on the stock market rally. Nearly 30 companies are lined up to list their shares on the Australian Stock Exchange (ASX) this month, of which half of them have already made debut on the domestic exchange. As many as seven companies will join the ASX next week, including Afterpay-led investment firm Touch Ventures, cancer diagnostic firm Pacific Edge, and tech firm Activeport Group. The list is dominated by resource companies such as Mitre Mining, Star Minerals, West Cobar Metals and Besra Gold.
The majority of recent new listings are from the resources sector as miners rush in to capitalise higher metal prices. The price of metals such as graphite, copper, cobalt, nickel and lithium have surged in recent past due to strong demands for electric vehicles and battery power globally. Base metals such as gold, silver and iron have also witnessed an uptick in prices.
Here's all you need to know about the forthcoming IPO listings in detail:
First on the list is cancer diagnostic company Pacific Edge (ASX: PEB). The company is expected to begin trading on ASX on 27 September.
PEB has filed for dual listing as a Foreign Exempt Entity as it is already listed on the New Zealand Stock Exchange (NZX). The dual listing will help the company access a broader pool of specialist international healthcare, institutional and retail investors.
Founded in Dunedin in 2001, the firm is specialised in discovery and commercialisation of cancer diagnostic and prognostic tests for better detection and management of cancer.
Next one on the list is investment holding company Touch Ventures (ASX: TVL), which is pegged to start trading on 29 September. The company has proposed to raise AU$100 million at an offer price of 40 cents apiece. Australia’s largest buy now, pay later (BNPL) player Afterpay (ASX: APT) is the largest shareholder in this investment firm.
Afterpay has committed to invest AU$10 million under the offering, while another shareholder Woodson Capita is also expected to participate. Formerly known as AP Ventures, the company intends to create long-term value for its shareholders by investing in high growth companies.
Next in the list is an Australian tech company. Shares of ActivePort Group (ASX: ATV), a data centre operator, are set to list on the ASX on 27 September after successfully raising AU$15 million via IPO.
The telecommunications software provider issued shares at an offer price of 20 cents. Ahead of the IPO, the company raised AU$3.9 million in pre-IPO rounds amid an acquisition spree.
The Sydney-based company sells software to telcos, internet services firm and systems integrators. It is riding on the wave of increasingly popular software-defined wide area network (SD-WAN) solutions, which are moving the telco market away from traditional revenue streams and services, such as fixed telephony, mobile and data, and towards software and cloud-based technologies.
Mitre Mining Corporation
Next up is exploration and mining firm Mitre Mining Corporation (ASX: MMC), which is slated to make a debut on the ASX on 30 September.
The homegrown mining firm raised AU$5 million by offering 25 million shares at an issue price of 20 cents. The company holds interest in the Mitre project, located in the major mineral province of the eastern Lachlan Fold Belt near Batemans Bay on the NSW southern coast.
Another explorer headed for the ASX listing is Star Minerals (ASX: SMS). The Western Australia-based firm will kick off trading on the domestic bourse on 30 September.
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. The company will use IPO proceeds to fund the development of the advanced Tumblegum South gold project.
West Cobar Metals
Another miner, West Cobar Metals (ASX: WC1), is slated to begin trading on the ASX on 1 October with a market capitalisation of AU$8.3 million.
The mining and exploration company has successfully raised AU$5.5 million at an offer price of 20 cents a share in its initial public offering.
Xcel Capital acted as lead manager to the IPO, which opened for subscription between 16 August to 13 September 2021. The company’s projects are located in and around the underexplored West Cobar district in New South Wales. It intends to use the IPO proceeds to fund its exploration for target commodities such as copper, gold, lead and silver.
Besra Gold Inc
Last but not the least, Australian gold miner Besra Gold Inc (ASX: BEZ) is expected to make a debut on the ASX on 1 October.
The company has raised AU$12.5 million from the secondary market, via the issue of 62.5 million Chess Depository Interests (CDIs) at 20 cents per CDI. Each CDI will be equivalent to one ordinary share of Besra Gold.
Besra is already a Canadian incorporated company having its listing on the Toronto Stock Exchange (TSX). The company is focused on the exploration and development of the Bau Goldfield situated in Sarawak in East Malaysia. The company’s interest in the Bau Project dates back to 2006. Since then, it has expended a sizeable amount of over AU$62 million on exploration activities.
If you are planning to invest in these companies, please check their credibility and track record before making investment decisions. This includes analysts’ views, brokerage ratings, industry outlook, financial performance, and peer review.