WEDNESDAY 17 JANUARY 2024: The IPO Network is pleased to release the December 2023 quarterly report of companies listing on the ASX, highlighting IPO activity in the second 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 steady in the December 2023 quarter (Q2
FY2024), with 9 new stocks undertaking IPOs over the quarter. This was equal to the total
number of stocks listing on the ASX in the previous quarter. As we remain in a difficult market, the
consistency quarter-over-quarter is encouraging.
Market Commentary
- The Australian stock market ended the year strong. Key Australian equity indexes recorded 7.9%+ in Q2 FY2024, with an end of year recovery evident across many sectors of the market. The Small Ordinaries benchmark led the way higher, rallying 8%. Major US bellwether indexes also gained in an end of year rally during Q2 FY2024
- Higher pressures abated, but not enough for cuts yet. Like last quarter, most central banks left their benchmark interest rates unchanged at recent policy setting meetings. Although speculation has increased that cuts are expected by most major central banks over the next 12-months. However, geopolitical concerns accelerated during Q2 FY2024, raising concerns around shipping disruptions.
- 9 IPOs occurred the ASX in Q2 FY2024, details of which are provided in the attached table
- 4 of the 9 new listings over the period were Materials sector stocks, this is compared to 5 in the previous quarter
- Performance of Q2 FY2024 IPOs has been mostly strong since listing. As at the end of 2023, 6 of these 11 companies were trading above their respective IPO issue prices.
- No near-term rebound is expected in Australia’s IPO market. The ASX only lists 8 new IPOs over coming months, with 7 of these being Materials sector stocks. The largest near-term IPO in the pipeline is a tie between Kali Metals Limited and Ashby Mining Limited, which are both expected to raise $15,000,000.
IPO listings by market cap since start of Q2 CY2023
| Company | ASX Code | Market Cap (AU$M) |
| Brazilian Rare Earths Limited | BRE | 404.65 |
| Nido Education Limited | NDO | 218.52 |
| Chariot Corporation | CC9 | 85.44 |
| Enlitic | ENL | 70.73 |
| Tolu Minerals Limited | TOK | 59.98 |
| LTR Pharma Limited | LTP | 48.09 |
| CGN Resources Limited | CGR | 20.93 |
| Freedom Care Group Holdings Limited | FCG | 16.24 |
| Great Dirt Resources | GR8 | 8.79 |
Potential IPO pipeline
| Company | Focus | Size (AU$m) |
| Ashby Mining Limited | Mining | 15 |
| Far Northern Resources Limited | Mining Exploration | 6 |
| Fuse Minerals Limited | Mining Exploration | 10 |
| Golden Globe Resources | Mining Exploration | 6 |
| Infini Resources Limited | Exploration and Mining | 5.5 |
| Kali Metals Limited | Exploration | 15 |
| The Australian Wealth Advisory Group | Investment Holding Company | 5 |
| Western Australia Energy Resources | Mineral Exploration | 5 |
About IPO Network
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The IPO Network will steer you around the pitfalls and help you list your organisation cost-effectively and in the fastest possible time. After your organization’s successful listing, we can also assist on an ongoing basis and help you to meet the ongoing compliance obligations imposed on directors and executive management.
For more information visit: www.ipo-network.com.au
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