This is exactly how bad it was for IPOs in 2022 – AFR


Sluggish markets and weaker investor sentiment also wreaked havoc with underwriting targets in 2022. Only 70 percent of last year’s listings met their funding target, down from 87 percent in the previous year and well below the five-year average of 81 percent. .

The survey was completed before Bain Capital said last week it would “solicit advice shortly” on an initial public offering to return airline Virgin Australia to the ASX in what could be the biggest flotation of the year, as it seeks to capitalize on the upturn in travel. demand

However, even if Virgin joined the ASX’s confirmed portfolio of pending listings, it was still unlikely to open the floodgates for larger-cap listings, said Marcus Ohm, partner at HLB Mann Judd for at Corporate and Audit Services in Perth and co-authored the report. .

“There’s a particular set of circumstances at Virgin – Bain knows it’s going to be profitable in 2022-23, so the idea might be to list that now, because who knows what’s around the corner in terms of fuel costs, or d “some other macroeconomic or geopolitical shock,” Ohm said.

“It is this uncertainty that we believe will prevent many more significant listings from coming to market this year.”

Just 10 companies had formally applied for an ASX listing, looking to raise $118.5 million, as the report was completed earlier this month. That’s considerably lower than the $250.40 million sought by the end of 2021.

The largest IPO in the pipeline in 2023 was rare earth producer VHM, which listed on Jan. 9 after raising $30 million, the report said.

Only one IPO was proposed that did not belong to the materials sector. Acusensus, which designs and develops AI-enabled solutions, went public on January 10 after raising $20 million.

Ohm said the materials sector would likely be the main source of new listings for this year’s balance sheet, and in particular explorers or producers of lithium, a vital component of batteries needed by electric vehicles.

“Automakers are falling over themselves trying to shore up lithium supplies because they can see that’s the way the world is going,” Ohm said.

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