- The Australian IPO market continues to see a surge in new offerings.
- As many as eight companies are set to make debut on the ASX next week.
- The list includes four mineral exploration companies.
The Australian initial public offering (IPO) market continues to see a surge in new offerings with a long list of companies set to debut on domestic stock exchange. While the last month we saw several resource companies taking the IPO route, this month we can see a mix bag, with technology, health care, and financial players joining the league.
As many as eight companies, including four mineral exploration companies such as 8 Au, Winsome Resources, Infinity Mining, and Orange Minerals NL.
8 Au, Alloggio Group, Biome Australia, Close the Loop, Infinity Mining, Orange Minerals NL, RocketBoots, and Winsome Resources, are lined up to make debut on Australian Securities Exchange (ASX) debut this week.
Let’s discuss about these companies in details:
A new exploration company backed by mining industry veteran Bryan Frost, 8 Au (ASX: 8AU) is set to soon join the Australian Securities Exchange (ASX). The resources company is expected to list its shares on the domestic exchange on 3 December 2021, with a market capitalisation of around AU$19 million. The company seeks to raise up to AU$12 million at 20 cents a share in its initial public offering.
The IPO proceeds will be used for the development of its Western Australia-based exploration projects. The company has a range of projects throughout WA, including the East Pilbara Gold Project, the Yallalong Ni & Cu Project near Geraldton, and the Plumridge Gold Project
Short-term accommodation managing company Alloggio Group (ASX: ALO) is slated to commence trading on 29 November 2021. Given the travel sector is set to boom following ease in travel restrictions, the company is looking to raise AU$16.5 million in its IPO. The New South Wales-based property management company proposed to issue 82.5 million ordinary shares at an offer price of 20 cents per share.
Alloggio operates through two divisions – first, the Holiday Property Management business division, covering 879 homes, units and apartments in Australia; second, the Mid-market Hotels division, with 13 hotels under management. The company lists them on the likes of Airbnb, Expedia and Trivago, as well as on its own direct booking platform called Winning Holiday.
The listing came a week after hotel distribution and technology provider Siteminder made a strong debut on the ASX. The world’s leading hotel Software-as-a-Service (SaaS) platform raised AU$627 million with a AU$1.36 billion market capitalisation.
Biome Australia (ASX: BIO) is planning to list on the ASX on 30 November 2021. The probiotics and complementary medicines business has undertaken an IPO to raise AU$8 million to accelerate growth initiatives.
Biome is the third biotech firm to make debut on the exchange in last one month, with regenerative medicine company Tissue Repair commencing trade last week. Also, clinical-stage radiopharmaceuticals company Radiopharm Theranostics is set to join the ASX on November 25.
Close the Loop
Another company to hit the ASX next week is Close the Loop (ASX: CLG). The company has a sustainability edge as it is involved in resource collection, recycling and packaging business.
The company has proposed to raise AU$12 million and shares are slated to begin trading on 30 November with a AU$66 million-odd market capitalisation. The company has appointed Aitken Murray Capital Partners and Cumulus Wealth as lead managers to manage the offer.
Diversified minerals exploration and development company Infinity Mining (ASX: IMI) is slated to begin trading on the ASX on 3 December. The renewable earth materials explorer looked to raise up to AU$10 million at an issue price of 20 cents apiece.
The IPO came at a time of an increase in the demand profile for nickel, base metals, copper, and gold. Macarthur Minerals (ASX:MIO), of which the Company was formerly a subsidiary, has held tenement portfolios in the Pilbara and Central Goldfields regions of Western Australia for many years.
The purpose of the Offer is to provide funds to implement the Company’s business strategies to deliver short- to medium-term gold mining targets in and around mining blocks.
Orange Minerals NL
The next on the list is gold and copper explorer Orange Minerals NL (ASX: OMX), which is likely to start trading on the ASX on 3 December. The shares were originally scheduled to make debut on 25 November, but it was deferred due to undisclosed reason.
Headed up by managing director David Greenwood, the miner owns projects in the historic Lachlan Fold Belt in New South Wales and the Eastern Goldfields in Western Australia. It proposes to raise up to AU$7 million at 20 cents in its IPO.
Next is software business Rocketboots (ASX: RCO), which is set to list its shares on 29 November. The company looked to raise AU$4.5 million at 20 cents a share.
The company makes software products that solve fundamental problems across a range of business domains. Taylor Collison was appointed as lead manager to the IPO, which opened for subscription between 28 October and 12 November 2021.
Lithium exploration and development company Winsome Resources (ASX: WR1) is pegged to begin trading on the ASX on 30 November. The company launched its AU$18 million IPO to cash on in global demand for lithium.
The company is well positioned to leverage the growing appetite for this critical battery metal – an integral component of batteries for electric vehicles – which is leading the surge in demand for lithium.
The Aussie company is focused on the exploration and development of high quality spodumene concentrate, suitable for conversion across many different battery applications.