A surge in small-cap listings powered IPOs in Australia to a 61.6% average return in 2017, according to the annual OnMarket Report.
These smaller ASX listings — IPOs of less than $50 million — returned an average 69.8%. Compare that the ASX200 index which rose 7% in 2017.
The number of IPOs was 113, up from 96 in 2016 and 85 in 2015. The total raised was $6 billion.
The top performing IPOs for 2017:
Ardea Resources listed in February 2017 and raised $5.1 million at 20 cents a share. At the time of the prospectus, gold was the focus but since then the company is concentrating on cobalt. Today Ardea is trading at $1.25.
Infant formula maker Wattle Health Australia listed in March, raising $8 million at 20 cents a share. Wattle last traded at $2.21.
Cann Group, which raised $13.5 million at 30 cents a share, was the first Australian company to secure licences for research and to cultivate medical cannabis. Cann is trading at $2.89 today.
Six medical cannabis companies listed on the ASX in 2017. Two were part of the top 10 performers for the year. They are Cann Group and The Hydroponics Company.
“In last year’s 2016 IPO report, we noted the outperformance of smaller IPOs over large IPOs and we forecasted a strong year ahead,” says OnMarket CEO Ben Bucknell.
IPOs by sector in 2017:
IPOs in the Financials sector finished the year up 17.8% and accounted for the most funds raised, just under 68.7% or $4.1 billion.
The largest three floats in 2017 were Magellan at $1.5 billion, VGI Partners Global Investment at $550 million and MCP Master Income Trust at $516.2 million.
The breakdown by sector and the amount raised:
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