Australian IPOs have returned an average 25.9% for the nine months to September, according to the OnMarket 2017 third quarter report.
This is 25.6% more than the ASX200 index which gained 0.3% over the same period.
Smaller sized IPOs from the materials sector delivered solid returns, representing six of the top eight performers in the last quarter, including Titomic which returned 122.5%, and Okapi Resources with 65%.
The September quarter performance:
Of the 78 companies to float in 2017, 28 or 36% are from the materials industry.
In the July-September quarter, that trend rose to 47%, with the materials accounting for nine of the 19 ASX listings.
This calendar year so far 78 companies have listed on the ASX, compared to just 57 for the same period last year, an increase of 36.8%.
However, total capital raised fell to $2.635 billion from $4.796 billion in the first three quarters of 2016 compared.
This equates to the average raising in 2017 of $33 million compared to $84 million in 2016.
The top IPOs for 2017 so far:
- Alderan Resources (Materials), the base metals exploration company, with a year to date return of 685% after listing on June 9.
- Wattle Health Australia (Consumer Staples) with a return of 360%.
- Ardea Resources (Materials) which has returned 342% from its ASX listing on February 9.
The top ten performers by returns:
OnMarket managing director Tim Eisenhauer says there are many opportunities for investors looking to diversify their portfolios by accessing smaller IPOs.
“Most institutional investors aren’t interested in smaller IPOs which means there is room for self-directed investors to access returns,” he says.