IPOs are defying the Australian share slide

Cheng Peng of China falls during the ISU World Figure Skating Championships 2016 in Boston. Maddie Meyer/Getty Images

Australia still has an appetite for IPOs.

Local IPOs outperformed in the March quarter while the rest of the market took a hammering and continues to be subdued.

The ASX 200 lost 4.02% in the first three months of 2016, led down by financial stocks which dropped 8.3%.

The market fall is shrinking returns from superannuation funds, with the latest numbers showing the median balanced option, held my most Australians, down 0.5% in February, the fifth negative month of the financial year, according to analysts SuperRatings.

So far this year, funds are down 1.6% and the double digit returns of the last three years are unlikely to be repeated.

However, analysis of the performance of the 13 IPOs which debuted on the ASX in the three months to the end of March shows a gain of 1.3% by these newly listed companies.

First-day returns averaged 9.2%, according to the OnMarket First Quarter IPO Report.

Here are the 13 newly listed companies from a variety of sectors including finance and technology:

Source: OnMarket BookBuilds and Dealogic

The average return of the 93 companies listing on the ASX in 2015 was 23.0% by the year’s end, according to analysis of Dealogic data by OnMarket, an app designed to give investors access to IPOs.

“With ASX IPO activity in Australia outstripping activity in the US, where the IPO market has been almost dead, there has been ample opportunity for local investors to take advantage of companies going public,” says Ben Bucknell, CEO OnMarket BookBuilds.

“This tells you that even as markets swing, there is a decent pool of companies with sound business plans ready to grow, and Australian investors are ready to back them.”

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