The big end of the ASX failed to deliver to investors in the last 12 months.
The ASX 20 index posted a total return of negative 7%, while the broader ASX 200 fell 4.1% in the 12 months to June. Including dividends, the total ASX 200 return was up a mere 0.6%.
Investors had to dig down into the rankings by size for better returns. The ASX 50-100 was up 17.7%.
But there was another way to lift the value of portfolios — IPOs.
The average gain on the 21 companies listing in the June quarter was 33.5%. In the same three months, the ASX 200 rose just 3%, according to the latest OnMarket Bookbuilds IPO Report.
These floats raised $2.38 billion compared to 13 with $106.8 million in the first quarter.
Nine of the latest debuts were companies from the IT sector with an average return of 10.7%.
Proving that big isn’t always better, the best performing IPOs over the quarter were all smaller cap IPOs:
- Abundant Produce. The company is a producer of vegetable seeds for non-ideal conditions such as poor soil, scarce water and extreme temperatures. The company expects strong demand in the Southeast Asia market. The shares listed at 20 cents and today they are trading at 84 cents.
- Graphex Mining. A spin-off company to hold IMX Resources’ Chilalo project in Tanzania and other graphite assets. Its shares, which listed at 20 cents, are trading at 57 cents today.
- ApplyDirect. An online business linking employers directly with job candidates and eliminate recruitment consultancies. Its 20 cent IPO shares are trading at 42 cents today.
All three did well on the first day of trading and extended that lead over the three months, as these charts show:
Other performers include IT company Afterpay, which was up 44% after listing on May 4.
Software company WiseTech Global jumped 32.2% by June 30 after listing on April 11 and plumbing manufacturer Reliance Worldwide Corporation was up 23.6% by the end of the financial year following an April 29 listing.
The largest five listings in the June quarter were Reliance Worldwide, WAM Leaders, Tegel Group Holdings, Global Traffic Network and WiseTech Global, which together raised $1,967 billion.
Here are the IPOs, according to OnMarket Bookbuilds, coming up soon: