IPO watch: Best & Less Group to debut on ASX today, how to buy this retail stock?

Summary

  • Best & Less Group is set to list on the ASX today.
  • The apparel and footwear retailer has raised AU$60 million via IPO.
  • Aquirian, East 33 and M3 Mining are also slated to commence trading on the ASX this week.

The month of July is proving to be one of the busiest months for the Australian initial public offering (IPO) market, with more than 30 companies being listed on the Australian Securities Exchange (ASX). While more than 25 firms have already joined the ASX, five companies, including Best & Less Group Holdings, Aquirian, East 33, M3 Mining and Almonty, are slated to make their debut on the domestic bourse in the final week of July.

Here’s is list of five companies that are scheduled to list on the ASX this week.

Best & Less Group Holdings Ltd (ASX: BST)

This apparel and footwear retailer is scheduled to make a debut on the ASX today after successfully raising AU$60 million via IPO at an offer price of AU$2.16 per share. As per the company, the offer garnered strong response from institutional and retail investors. Macquarie Capital (Australia) and Bell Potter Securities were appointed as joint underwriters and lead managers to the IPO.

The IPO follows a AU$40 million equity investment from BB Retail Capital (BBRC), a private investment firm founded and chaired by retail entrepreneur Brett Blundy, who is set to join the BLG board as BBRC’s nominee.

                    

The IPO Corner || Missed July's IPO Boom? Here's a look at the Upcoming IPOs on the ASX!

Best & Less Group is a leading player in the clothing and footwear market, which is estimated to account for a total consumer spend of AU$23.8 billion in Australia and AU$3.5 billion in New Zealand. The company, which focuses on baby and kids’ apparel, has strong physical store network in Australia and New Zealand, while it also sells through online channels. It operates the "Best & Less" brand in Australia and the "Postie" brand in New Zealand.

For the year ended June 2021, BLG reported an unaudited revenue of AU$663.2million, exceeding the prospectus forecast of AU$657.7 million by 0.8%. Total revenue grew at 6.1% as compared to the prior corresponding period. The apparel retailer finished FY21 with a robust pro forma net cash position of AU$26.7 million, ahead of the Prospectus proforma forecast of AU$22.7 million. The company is set to announce its audited full year results for FY21 on 26 August 2021.

Aquirian Limited (ASX: AQN)

The shares of mining services firm are scheduled to begin trading on the domestic bouse on 27 July 2021. The Perth-based company has successfully raised AU$8 million at an offer price of 20 cents apiece via its IPO. Pursuit Capital and JP Equity Partners acted as joint lead managers to the offering.

The company intends to use the proceeds to accelerate the development and commercialisation of its mining solution system ‘Collar Keeper’, underground fleet expansion and expand Maglok Australia manufacturing capability. The fund will be also used to meet working capital requirements and bear the cost of the IPO.

Established in 2017, Aquirian is an emerging specialist mining services company that offers people, equipment and innovative products to support its clients across the sector. The company operates through two divisions - people services and mining services.

East 33 Limited (ASX: ETT)

A rock oyster producer and supplier, East 33 Limited is set to commence trading on the Australian Securities Exchange on 26 July 2021. The company had looked to raise AU$32 million at an issue price of 20 cents per share.

This is the second attempt by East 33 to get listed on the ASX after it rolled back its IPO plans last year, citing adverse market conditions. It is the largest vertically integrated Sydney Rock Oyster producer, processor and supplier in Australia. Sydney Rock Oysters is an endemic oyster species, which is extremely rare, natively thriving in just 41 locations on the east coast of Australia.

East 33 will use the IPO proceeds to undertake a transformational growth program and to buy more oyster farms.

M3 Mining Limited (ASX: M3M)

This metal and gold exploration company is set to list on the ASX on 29 July 2021. The company had proposed to raise AU$4.6 million at 20 cents a share in its IPO.

Under the IPO, the company issued 23 million shares to retail investors which opened for subscription on 3 June and closed on 24 June. Discovery Capital Partners Pty Ltd was appointed as lead manager to the IPO.

Established on 22 September 2020, the company’s main objective, on completion of the IPO, is to focus on mineral exploration of resources opportunities, which can deliver value and growth. The company also intends to focus on valuating and acquiring other resource opportunities that are a strategic fit for the company and have the potential to deliver growth for shareholders. The company holds 100% interest in the Edjudina project as well as Victoria Bore project.

Almonty Industries Inc. (ASX: ALL)

This Canada-based global mining company was set to commence trading on 26 July 2021. However, the listing date has been deferred due to undisclosed reason, as per the latest update available on the ASX. The company had looked to raise AU$13.5 million by the issue of CHESS Depositary Interests (CDIs) over fully paid ordinary shares. The shares were issued at an offer price of AU$1 per share.

The company, already listed on the Toronto Stock Exchange, is engaged in the business of mining, processing and shipping of tungsten. It has tungsten mines in Spain, Portugal and South Korea. The company will use the IPO funds to finance the construction and completion of the Sangdong tungsten mine in Gangwon Province, South Korea.

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