Highlights
- The ASX IPO market has remained weak in 2022.
- There were 59 public offerings in the first six months of this year.
- There were 130 new listings in 2021’s second half.
The market outlook for ASX initial public offerings (IPO) remains weak in 2022 on account of high market volatility and ongoing geopolitical tensions, according to the latest data available on the ASX.
The weak sentiment has increased challenges in raising capital from the market so far this year against what was witnessed in 2021, as per the recently released HLB Mann Judd IPO Watch Australia mid-year report. There were over 200 public listings last year.
For context, there were 59 public offerings in the first six months of this year against 61 in the corresponding period last year. There were 130 new listings in 2021’s second half.
The year 2022 has also seen a sharp decline in capital raised.
Fewer companies registered a listing date with the exchange as of 30 June 2022 against the corresponding period last year. “At this stage, it seems unlikely that the IPO market in 2022 will come anywhere near the amounts raised or the number of listings that we saw last year,” said Marcus Ohm, the author of the HLB Mann Judd IPO Watch Australia mid-year report.
In terms of sectors, a majority of IPOs were from the resources sector as of the end of June.
The public offering market appears to be muted on an overall note. Any further decline in the domestic stock market is expected to negatively impact the number and size of IPOs for the remaining time of 2022 and 2023 as well. Therefore, investors are expected to keep a close tab on the market going ahead.
Here we at Kalkine Media look at a few IPOs which are set for ASX listing this month (as of 13 September 2022).
Octava Minerals Ltd (ASX:OCT)
Octava Minerals is a mineral exploration company. Octava Minerals focuses on the discovery of metals such as lithium and gold. The latest ASX IPO data shows that the mineral explorer’s IPO would be listed on the exchange on 14 September 2022.
Octava Minerals raised AU$6 million through a public offering. The capital was raised by the company at an issue price of AU$0.20. Bell Potter Securities Ltd was the lead manager of the company.
Critical Minerals Group Ltd (ASX:CMG)
Critical Minerals Group focuses on critical minerals which are needed for electric vehicles, energy storage and renewable energy. The official website of the ASX shows this IPO’s listing date as 27 September 2022. In its IPO, the company raised capital worth AU$5 million. The funds were raised at an issue price of AU$0.20 per share. The joint lead managers for the public offering were Vested Equities Pty Ltd and Harbury Advisors Pty Ltd.
Basin Energy Ltd (ASX:BSN)
Basin Energy is an exploration and mining company. The official website of the company focuses on introducing it as the one which focuses on the exploration of high-grade lithium in Canada’s world-class Athabasca Basin. The company also says it seeks to support a transition to carbon neutrality.
The company’s public offering is scheduled to be listed on 29 September 2022. The company had earlier raised AU$9 million via its IPO at an issue price of AU$0.20. It had appointed Discovery Capital Partners Pty Ltd Bell as its lead manager.
Adrad Holdings Ltd (ASX:AHL)
Adrad Holdings is focused on the design and manufacturing of innovative heat transfer solutions globally and the distribution of automotive parts.
The company’s IPO would be listed on the ASX on 30 September 2022. It had raised AU$22 million via its IPO at an issue price of AU$1.50. Bell Potter Securities Ltd and Morgans Corporate Ltd were the lead managers for the IPO.
LGI Ltd (ASX:LGI)
LGI is focused on the recovery of biogas from landfills and conversion into renewable electricity and saleable environmental products.
The company’s public offering is set to be listed on 4 October 2022. LGI had raised AU$25 million at an issue price of AU$1.50. Bell Potter Securities Ltd, Morgans Corporate Ltd, and Aitken Mount Capital Partners Pty Ltd were the lead managers of the IPO.
Omega Oil & Gas Ltd (ASX:OMA)
Omega Oil & Gas is a gas exploration and oil production company. According to the latest ASX data, the company’s IPO would be listed on the exchange on 11 October 2022.
Earlier, the company had raised AU$15 million through a public offering. The capital was raised by the company at an issue price of AU$0.20. Prenzler Group Pty Ltd was the lead manager of the company.
Source Certain International Ltd (ASX:SC1)
Source Certain International describes itself as Australia's leading provenance testing service with a globally significant origin verification solution developed over the last 40 years. The company’s IPO would be listed on the exchange on 19 October 2022.
Earlier, the company had raised AU$7 million through a public offering. The capital was raised by the company at an issue price of AU$0.20. Peloton Capital Pty Ltd was the lead manager of the company.
Bubalus Resources Ltd (ASX:BUS)
Bubalus Resources is a mineral exploration and mining company. According to the official website, the company is “focussed on the exploration and development of the Amadeus Project (prospective for Manganese), the Coomarie Project (prospective for Heavy Rare Earths), the Nolans East Project (prospective for Light Rare Earths), and the Pargee Project (prospective for Heavy Rare Earths), which are located in premier geological provinces of the Northern Territory and Western Australia.”
The company’s IPO would be listed on the exchange on 13 October 2022. Earlier, the company had raised AU$5 million through a public offering. The issue price was set at AU$0.20 for the capital raise. Inyati Capital Pty Ltd was the lead manager for the public offering.
Note:
- ASX codes are proposed only. The data has been procured from ASX IPO website.
- Listing dates are proposed dates for the first quotation of securities set out in the entity's prospectus or information memorandum and are subject to change without notice.
- Listing dates are expected dates for the first quotation of securities set by the ASX after the completion of admission procedures. These could change without any notice.