It’s been the biggest year for IPOs on the ASX since the Global Financial Crisis.
There were 58 market debuts totalling almost $14 billion in the 2014 financial year and a number of fund managers are forecasting the year ahead to be even stronger with some big floats coming down the pipeline.
The AFR reports July deals include the $266 million 3P Learning IPO and SmartGroup Corp’s $106.1 million float. Other potentials this new financial year include the $4 billion IPO of Medibank Private and the floating of Healthscope which is looking to raise up to $2.6 billion.
“It is late in the IPO cycle but we should continue to see a number of offers come to the market in the coming months. Quality will continue to be mixed and investors will need to assess every opportunity on its merits,” Colonial First State Global Asset Management head of Australian equities core Matthew Reynolds said.
Behind the buoyant predictions is an attitude change from some investors towards private sellers, record low interest rates boosting equity markets and excitement that government assets could be floated.
“We’ve had a strong start to the year but the second half is set to be bigger with some larger IPOs already flagged,” Citi head of capital markets origination John McLean said.
The biggest IPO launching onto the ASX in the last 12 months was the $NZ1.9 billion float of the New Zealand government’s utility Meridian Energy. Tech company Freelancer’s float in November at $0.50 cents a share and a market cap on listing at $218 million has also boded well for the company, with shares closing out the financial year at $0.94 cents.
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