The struggling IPO market is expecting a turn around following the news several large floats will join this year, possibly more if the global sharemarket rally holds.
The AFR has reported $6 billion could be raised in the fourth quarter through initial public offerings from companies including:
- Meridian Energy
- Nine Entertainment Co
- Fife Capital Industrial REIT
- APN Property Group
- Dick Smith Investments
- Redcape Hotel Group
Other deals in the works could also be a game changer for the market and would bring in record-breaking offers in 2014.
But the conditions aren’t great for everyone with small companies still expected to struggle.
Michael Atkins, director of the Perth-based broker Patersons has said it won’t effect them.
“We have noticed a gradual improvement in risk appetite among our clients, but not enough to say the IPO game has changed in the junior resource sector.
“Investors are still nervous about the liquidity of smaller IPOs in the secondary market and aftermarket price support for them. However, we are working on several sizeable IPOs of public unlisted companies that have been carrying out exploration using private funds and now seek an IPO to access public funds,” Atkins told the Financial Review.
Analysis from the ASX shows $3.4 billion has been raised through floats this year, and if things go according to plan the IPO market could raise up to $10 billion by the end of the year.
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