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 |
|---|---|---|---|---|---|---|---|---|
| Bubs Australia | RTO | BUB | 3/01/2017 | $0.100 | $0.135 | 35.0% | $0.180 | 80.0% |
| Winha Commerce & Trade International | IPO | WQW | 5/01/2017 | $0.350 | $0.490 | 40.0% | $0.470 | 34.3% |
| Skin Elements | IPO | SKN | 6/01/2017 | $0.200 | $0.200 | 0.0% | $0.190 | -5.0% |
| Asset Owl | RTO | AO1 | 06/01/2017 | $0.200 | $0.165 | -17.5% | $0.220 | 10.0% |
| Lifespot Health | IPO | LSH | 11/01/2017 | $0.200 | $0.400 | 100.0% | $0.330 | 65.0% |
| United Networks | IPO | UNL | 12/01/2017 | $0.200 | $0.260 | 30.0% | $0.205 | 2.5% |
| Zenitas Health | RTO | ZNT | 13/01/2017 | $1.000 | $0.900 | -10.0% | $1.000 | 0.0% |
| Freehill Mining | IPO | FHS | 16/01/2017 | $0.200 | $0.150 | -25.0% | $0.110 | -45.0% |
| Kalamazoo Resources | IPO | KZR | 16/01/2017 | $0.200 | $0.210 | 5.0% | $0.185 | -7.5% |
| Thorney Technologies | RTO | TEK | 18/01/2017 | $0.200 | $0.230 | 15.0% | $0.235 | 17.5% |
| Davenport Resources | IPO | DAV | 20/01/2017 | $0.200 | $0.195 | -2.5% | $0.195 | -2.5% |
| Blackstone Minerals | IPO | BSX | 23/01/2017 | $0.200 | $0.205 | 2.5% | $0.200 | 0.0% |
| Murray Cod Australia | RTO | MCA | 31/01/2017 | $0.050 | $0.058 | 16.0% | $0.058 | 16.0% |
The team at
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