- The ASX ended 0.5% higher on Wednesday.
- Alvo Minerals surged 64% on IPO listing.
- ActivePort Group dropped 2.5%, while RAM Essential Services Property Fund rose 2%.
The Australian share market closed higher on Wednesday, driven by tech, banking and industrial stocks. The benchmark index, ASX 200, added 38.80 points or 0.53% to settle at 7,413.70. The top gainers on the ASX were tech business Codan (ASX:CDA), energy major Worley (ASX:WOR), e-commerce player Kogan.com (ASX: KGN), dairy nutritional company A2 Milk (ASX:A2M), and global online marketplace Redbubble (ASX:RBL).
On the initial public offering (IPO) front, three companies – ActivePort Group, Alvo Minerals, and RAM Essential Services Property Fund – made their debut on the domestic exchange. While exploration and development company Alvo Minerals surged 64% on IPO listing, the remaining two had a muted debut. Software business ActivePort Group dropped 2.5%, while Australian Real Estate Investment Trust RAM Essential Services Property Fund rose 2%.
Alvo Minerals jumps 64% on IPO debut
Shares of mineral explorer Alvo Minerals (ASX: ALV) had a stellar debut on the ASX, with the stock price surging as much as 64% above the listing price. The stock had a remarkable listing day, with shares closing at AU$0.41, against the listing price of AU$0.25.
The stock garnered good response from investors as 4.74 million shares worth AU$1.78 million changed hands over the counter.
The company commenced trading on the ASX at 11:30AM AEDT on Wednesday. The mineral explorer has raised AU$10 million by issuing 40 million shares at an offer price of AU$0.25 apiece.
The company will use the raised capital to support its mining activity at its flagship Palma Project located in central Brazil.
RAM Essential Services Property Fund ends 2% above listing price
Shares of Aussie Real Estate Investment Trust RAM Essential Services Property Fund (ASX: REP) closed 2% higher at AU$1.02 apiece, against a listing price of AU$1 apiece.
During the day’s trade, the stock gained as much as 5% to touch an intraday high of AU$1.05. There was a spurt in volume trade as 12.12 million shares worth AU$12.34 million changed hands over the counter.
The company raised AU$356.9 million in its initial public offering, which is the second-biggest real estate IPO of the year. It issued 356.93 million stapled securities at an issue price of AU$1 per stapled security.
REP, which invests in high quality Australian medical and essential retail real estate assets, intends to utilise the IPO proceeds to repay some existing investors, acquire additional properties, pay transaction costs and repay existing bank debt.
ActivePort Group falls over 2% on IPO debut
Shares of Australian tech company ActivePort Group (ASX: ATV) kicked off trading on the ASX on a subdued note, in an otherwise positive broader market. Shares of the telecommunications software provider ended 2.5% lower at AU$0.195.
During the day’s trade, ActivePort Group shares fell as much as 5% to touch an intraday low of AU$0.19.
The company, a data centre operator, listed its shares on the ASX after successfully raising AU$12 million via its IPO on strong support from institutional investors. The shares were issued at an offer price of AU$0.20.
The company had appointed Bridge Street Capital as lead manager to the IPO. The raised capital will help the company to accelerate its global expansion plans.
The Sydney-based company sells software to telcos, internet services firm and systems integrators. It has recently expanded its Australian sales team with the appointment of a new Chief Sales Officer in Sydney in July this year.