Two things holding back Australia’s IPO market

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It’s another year of what could have been for Australian IPOs. There is only one way to properly open the window: price and timing.

This is the time of year when float-hopefuls have freshly audited financial statements and forecasts, and investors have time to assess new listings.– and even they are taking a softly, softly approach to try to get to the ASX boards. There is not a blockbuster deal in sight.Neither is really worth writing home about; Cuscal is the biggest with about a $350 million raising, and starts meeting investors this week in London.

That pressure is most keenly felt in small and microcaps, which is the IPO landing zone whether you are in Australia or offshore, and there are bombed out tiddlers across the market.In Australia, it has not helped that a lot of former IPOs are trading underwater, left behind or having launched their floats in much friendlier markets. Adore Beauty is the prime example: it listed at $6.75 a share in October 2020 when investors were scrambling for any sort of pandemic winner.

The last time we had such an IPO hiatus, it took a sure-thing to help turn green shoots into a full-on floats boom that helped spark more than 900 ASX new faces in the decade since.

 

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