“The companies that have applied as of today are hoping to raise $179 million, which is a 70 per cent reduction on the $603 million sought at the end of 2017,” he said.
“This reflects sentiment after the performance of IPOs in 2018. Companies considering listing will need to clearly articulate their offerings.”
While iflix might be viewed as a potential saviour for a moribund IPO market, it was the $1 billion-plus listings of 2018 that did the most to drag down the average return of IPOs.
The three that got away last year – Viva Energy Group, Coronado Global Resources and L1 Long Short Fund Limited – ended the year with an average share price decline of 27 per cent.
Only 20 of the 93 new listings last year were above water by the end of the year. The best performers were both small caps – defined by HLB Mann Judd as those under $100 million market capitalisation on debut – with Adriatic Metals up 188 per cent and Exopharm up 175 per cent.
Third-best was one of last year’s 21 listings with a market cap above $100 million, Elixinol Global, with the hemp product maker up 150 per cent on its issue price.
However the overall poor sentiment was reflected in a failure to meet capital-raising goals. Only 72 per cent of 2018’s new listings could meet their stated targets in their prospectuses, sharply down on the 79 per cent and 83 per cent success rates recorded in 2017 and 2016 respectively.
from A Viral Update http://bit.ly/2CRPfJK
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