MONDAY 15 JULY 2024: The IPO Network is pleased to release the June 2024 quarterly report of companies listing on the ASX, highlighting IPO activity in the fourth quarter of FY2023.
IPO’s in Review
A quarterly summary of companies listing on the ASX
New listing activity in the Australian stock market picked up over the June 2024 quarter (Q4
FY2024), with 9 new stocks listing on the ASX over this period. One of these stocks was the much-anticipated float of Quick Service Restaurant chain Guzman Y Gomez.
Market Commentary
- The Australian stock market was mixed. Key Australian equity indexes went lower over Q4 FY2024, in stark contrast to the solid gains reported on US bourses (the NASDAQ especially). The S&P/ASX 200 retreated by nearly 2%, as falls in its Real Estate. Materials and Energy sectors were partially offset by gains in the Financials (ex REITs), Utilities and Health Care sectors. The Materials sector softened despite slightly higher iron ore prices over Q4 FY2024.
- Investor sentiment hurt by ‘sticky’ inflation data. Australian investors were rattled by still high inflation indicators, a June 2024 RBA rates decision commentary that conceded excess demand continued to percolate through the domestic economy, and further gains in closely watched home price surveys. As a package, this economic news flow hinted that our central bank could again increase its benchmark interest rate over coming months. Geopolitical concerns also continued to adversely impact investor sentiment, as worries over ongoing conflicts (again headed by those in eastern Europe and the Middle East) were joined by election uncertainties in the UK and France, and the volatile build up to the US Presidential election in November 2024.
- 9 new companies listed on the ASX in Q4 FY2024, details of which are provided in the attached table. 3 of these stocks have market caps of over $150 million.
- Q4 FY2024 IPOs were spread across several sectors – 4 of the 9 Q4 FY2024 IPO stocks were Metals & Mining companies. The remaining IPOs were in Industrials, Consumer Discretionary, Financials and Health Care.
- Around half of these recent IPOs have rallied since listing. As at early July 2024, 4 of these 9 recently listed companies were trading above their respective IPO issue prices. The strongest performer was Sun Silver Limited, which is currently more than double its IPO issue price.
- The IPO market is set for a subdued start to FY25. Just 4 new IPOs are currently expected to list in Q1 FY2025. Small cap Materials sector companies Axel Ree and Ordell Minerals are set to list in mid-July 2024. The 2 other companies targeting an IPO over the near term are marine services group Bhagwan Marine and mining explorer Piche Resources.
IPO listings by market cap since start of Q4 FY2023
| Company | ASX Code | Market Cap (AU$M) |
| Guzman Y Gomez Limited | GYG | 2,870 |
| Tasmea Limited | TEA | 331 |
| Pengana Global Private Credit Trust | PCX | 161 |
| Sun Silver Limited | SS1 | 37 |
| Alfabs Australia Limited | AAL | 26 |
| Resouro Strategic Metals Inc. | RAU | 17 |
| BlinkLab Limited | BB1 | 16 |
| D3 Energy Limited | D3E | 14 |
| Far Northern Resources Limited | FNR | 7 |
Potential IPO pipeline
| Company | Focus | Size (AU$m) |
| Bhagwan Marine | Marine services | 80 |
| Axel Ree | Rare earths | 15 |
| Piche Resources | Mineral exploration | 10 |
| Ordell Minerals | Gold and lithium | 6 |
About IPO Network
The IPO Network was established by a diverse group of professional service providers in 2010; our network of consultants and advisors assist businesses to prepare and execute their exit strategy and to support listed companies beyond their IPO.
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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