FRIDAY 6 OCTOBER 2023: The IPO Network is pleased to release the September 2023 quarterly report of companies listing on the ASX, highlighting IPO activity in the third quarter of 2023.
IPO’s in Review
A quarterly summary of companies listing on the ASX
New listing activity in the Australian stock market was stronger in the September 2023 quarter (Q1 FY2024), with 10 new stocks undertaking IPOs over the quarter. This was double the total number of stocks listing on the ASX in the previous quarter, However, putting things in perspective, this Q1 FY2024 total was shy of the 13 new IPOs occurring in the September 2022 quarter (Q1 FY2023).
Market Commentary
- The Australian stock market declines. Key Australian equity indexes recorded 2%+ falls in Q1 FY2024, with selling evident across many industrial sectors (Healthcare, Consumer Staples and Materials especially). The Small Ordinaries benchmark led the way lower with a near 4% decline. Major US bellwether indexes also retreated over Q1 FY2024.
- Higher energy prices rekindle Inflationary pressures. Most central banks left their benchmark interest rates unchanged at recent policy setting meetings, as signs emerged that earlier rate hikes have slowed consumer spending. However, key money market and fixed interest futures still factor in further modest rate increases at upcoming monetary policy meetings. This on concerns about the potential inflationary effects of the recent spike in oil prices (that jumped by around 30% in Q1 FY2024) and accelerating wages growth. Geopolitical concerns (the Russia/Ukraine war and US Congress leadership ructions included) remain in the background.
- 10 IPOs occurred the ASX in Q1 FY2024, details of which are provided in the attached table. 2 of these new companies have market capitalisations in excess of A$1.0 billion (Abacus Storage King and Redox).
- 6 of the 10 new listings over the period were Materials sector stocks, with five of these in the Diversified Metals & Mining sub-industry grouping. Of the remaining 4 Q1 FY2024 IPOs, 2 were in Health Care, 1 in Industrials and 1 in Real Estate.
- Performance of Q1 FY2024 IPOs has been mixed since listing. As at early October 2023, 6 of these 10 companies were trading above their respective IPO issue prices.
- No near-term rebound is expected in Australia’s IPO market. Only 12 new IPOs are expected to list over coming months, with 10 of these being Materials sector stocks. The largest near-term IPO in the pipeline is Nido Education, with an expected raise of around $99m.
IPO listings by market cap since start of Q2 CY2023
| Company | ASX Code | Market Cap (AU$M) |
| Abacus Storage King | ASK | 1,370 |
| Redox Limited | RDX | 1,130 |
| Curvebeam Ai Limited | CVB | 69 |
| Pioneer Lithium Limited | PLN | 17 |
| James Bay Minerals Limited | JBY | 12 |
| Cleo Diagnostics Limited | COV | 12 |
| Australian Critical Minerals Limited | ACM | 9 |
| Novo Resources Corp | NVO | 9 |
| Great Divide Mining Limited | GDM | 8 |
| Chilwa Minerals Limited | CHW | 8 |
Potential IPO pipeline
| Company | Focus | Size (AU$m) |
| Nido Education | Education | 99 |
| Midwest Lithium | Lithium | 17 |
| Chariot Corporation | Lithium | 15.5 |
| Ashby Mining | Mineral exploration/processing | 15 |
| Tolu Minerals | Mineral exploration | 15 |
| CGN Resources | Mineral exploration | 10 |
| Far Northern Resources | Mineral exploration | 6 |
| Golden Globe Resources | Mineral exploration | 6 |
| XLR8 Metals | Nickel | 5.5 |
| Great Dirt Resources | Mineral exploration | 5 |
| Western Australia Energy Resources | Mineral exploration | 5 |
| Freedom Care Group | Healthcare services | 3.2 |
About IPO Network
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