Companies have only raised about A$885 million through first-time share sales in the country so far in 2023, according to data compiled by Bloomberg. This comes after 2022, which was itself the slowest year for IPOs down under since 2012, with just A$1.1 billion raised.
“It’s been a really challenging year, we’ve seen a real drop off in activity,” Marcus Ohm, a partner at accounting firm HLB Mann Judd, said in an interview. “IPOs are expensive affairs so if you’re going to go down this path, you’ve got to be really confident you’ll have a successful bookbuild. For these larger companies it’s also a reputational issue if it all falls over.”
Bain Capital, the owner of Virgin Australia, is closely watching the latest earnings season in Australia before rolling out more investor briefings for the IPO, the people said. Qantas Airways Ltd., Virgin’s biggest domestic competitor, is buying more aircraft in a bid to keep pace with a post-pandemic travel boom that’s delivering record profits.
Chemical distributor Redox Ltd., which raised about A$402 million in Australia’s largest IPO this year, saw its shares fall as much as 15% below the issue price before recovering.
Canada Canada Latest News, Canada Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: SaltWire Network - 🏆 45. / 63 Read more »