Returns on IPOs Jump in 2016
Year-to-date returns on Australian Initial Public Offerings (IPOs) sat at an impressive 35.8% as at November 30, compared to just 2.7% for the S&P/ASX200, a sign of a healthy company float market, according to Ben Bucknell, Chief Executive of OnMarket BookBuilds (OMB).
The OnMarket November IPO Report reveals over the month of November, 12 companies raised a total $1.95 billion by floating on the Australian Securities Exchange (ASX), well up on the five listings in November 2015 which raised $558 million. The average return on those IPOs was 5.2%, a 2.8% outperformance of the S&P/ASX 200.
Ben Bucknell, Chief Executive of OnMarket BookBuilds (OMB), said it has been a good year for IPOs. “Year-to-date returns are strong a 35.8% compared with 21.4% for the same period in 2015. With the innovative OnMarket app and web portal steadily gaining in popularity among companies floating on the ASX, we expect to see sustained retail investment in IPOs in 2017, with the public drawn by these strong returns.
“The IPO pipeline appears strong, with 40 IPOs being proposed to date, which are expected to raise more than $450 million over the next three months,” Bucknell said.
During November, notable first-day performers were Malta-based healthcare provider Neurotech with a 42.5% gain, Apollo Tourism & Leisure with a 32.5% return and Mayfield Childcare with a 15% return.
OnMarket is the world’s first direct access portal and app for IPOs. Investors can sign up, bid and invest in companies without paying any commissions or brokerage. Using the OnMarket app and portal, retail investors can easily bid and invest in IPOs with as little as $2000.
The company’s world-first partnership with Virgin Australia’s Velocity Frequent Flyer program is drawing new members to use the OnMarket app.
“Velocity members can join right here and earn 1 Point for every $4 spent via OnMarket, with no limit on the number of Velocity Points that can be earned. This Velocity partnership enables new OnMarket members to build their wealth in IPO investments, which are on average high-growth, and fly on a Virgin plane faster.
“For smaller investors who can’t get a one-on-one meeting with a chief executive, the OnMarket app and platform, which boasts in-depth research and analysis on companies, can help them make more informed IPO investments directly through their smartphone 24/7,” said Bucknell.
