Market volatility driven by a slowing economy in China and falling commodity prices has created an unsettling environment for equity investors in 2016.
However, IPOs, mainly in the technology and financial services sectors, are still stock market darlings with some of them performing extremely well even against the falls at the start of 2016.
There were 97 ASX floats in 2015, up 33% from the year before, with a combined market capitalisation of $17.6 billion and capital raised in excess of $8.6 billion.
According to Deloitte’s 2016 IPO Report, produced in collaboration with mergers and acquisitions intelligence provider Mergermarket, these are the top 20 IPOs of 2015 by share performance:
“Growth was the theme common to the majority of listings, and the numbers certainly tell the story,” says Deloitte corporate finance partner Ian Turner.
From the list of the top performing IPOsr, the majority are small and mid-cap growth stocks, largely in the technology and related sectors, which raised less than $50 million of capital.
The outlook in 2016 is buoyant but subdued in comparison with the last two years.
“A key theme for 2016 will also be innovation,” Turner says. “While hopeful tech start-ups looking to follow the path of Atlassian’s listing success will be a large component of this trend, companies that provide solutions for Australia’s aging population and those that can tap into Chinese consumer demand will also present value propositions for investors.”