With the year well underway, January saw 8 Initial Public Offerings (IPO’s) and 5 Reverse Takeovers (RTO’s) list on the ASX.
Resource companies (FHS, KZR, DAV, BSX) were one of two sectors to feature prominently, joined by several consumer-facing businesses (BUB, WQW, SKN, MCA). Other sectors represented were: healthcare (LSH, ZNT); telecommunications services (UNL); information technology (AO1); and financials (TEK).
The overall performer of the month was Bubs Australia (BUB). Having engaged PAC Partners to raise $5.15m as part of a RTO, the manufacturer of organic baby food and goats milk formula raced from a listing price of 10c to a high of 45c within 4 days. In a surprise development, the company’s chairman resigned shortly after. Subsequent trading has seen BUB retreat to 18c, 80% above its listing price.
Other standout performers include Lifespot Health (LSH) and Winha Commerce and Trade International (WQW).
Lifespot Health raised $8m in a heavily oversubscribed IPO with the help of Peak Asset Management. LSH enjoyed a 100% rise on its ASX debut – the highest opening-day performance among January debutants. The stock has since traded sideways, mostly in the low-to-mid 30’s. The business reported contractual and market progress, including month-on-month revenue growth of 20% in December for its telehealth system.
Meanwhile, Chinese regional retailer WQW surged from a float price of 35c to 70c within 4 days. A steady decline has since ensued, ending January at 47c (+34.3%).
At the other end of the scale, Freehill Mining experienced a disappointing month. FHS lost 25% of its market value on its debut and finished the month 45% down.
Stay tuned for next month’s report.
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|Company||Category||ASX Code||Listing Date||Issue Price||Price End Day 1||Price End Day 1 %||Current Price||% Difference|
|Winha Commerce & Trade International||IPO||WQW||5/01/2017||$0.350||$0.490||40.0%||$0.470||34.3%|
|Murray Cod Australia||RTO||MCA||31/01/2017||$0.050||$0.058||16.0%||$0.058||16.0%|
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