IPOs getting bigger, but small caps still outperform, OnMarket BookBuilds says
Initial public offerings on the ASX are getting bigger and small cap floats and private equity exits are the best performers, according to data compiled by OnMarket BookBuilds.
The fintech company’s managing director Tim Eisenhauer said the past five years have seen a changing of the guard, as the end of the resources boom resulted in the number of mining company floats falling, while more technology companies sought to grow their fledgling businesses through listings.
OnMarket BookBuilds’ research takes in the first quarter of 2016, but the trend is already evident in the second quarter, where high-profile listings, including WiseTech Global, Afterpay and Monday’s Redbubble float, are all well over the $50 million mark.
“We are seeing the prevalence of technology companies continuing [in 2016] as well as financial and professional services,” said Mr Eisenhauer, whose OnMarket app allows retail investors access to IPOs, which are usually the domain of institutional funds.
Tech companies, too, have outperformed other floats. In the first quarter of 2015, the mean return on a tech companies’ offer price was 17.5 per cent, compared with 2.4 per cent for other companies.
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