Recent market losses have knocked the wind out of what was already a tough period for initial public offerings in Australia.
iSelect — the comparison website — found out the hard way when its shares fell sharply after its debut yesterday. Shares went down 15.7% from the $1.85 issue price, finishing at $1.56.
In an article by Michael Bennett at The Australian, Goldman Sachs head of equity capital markets Sean Walsh said IPOs probably wont pick up until after September.
“There’s a lot of pitching activity for IPOs going on. But I’d be surprised if it turned into material IPO issuance at these levels of volatility . . . it feels to us activity levels are going to be very slow until after the election.
“It’s at the end of reporting season, during which major equity issues rarely happen.”
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