Western Australian companies continued to flood the boards of the Australian stock market in the June quarter.
Western Australian companies continued to flood the boards of the Australian stock market in the June quarter.
A total of 31 WA companies completed initial public offerings in the three months to June 30, raising a combined $253 million.
The money raised through the IPOs eclipses the $138 million raised in the first three months of the year, as 23 companies completed IPOs and joined the Australian Securities Exchange.
There were only two new floats in the past three months that were not resources linked – phone company Loop Mobile Ltd and financial services technology company ThinkSmart Ltd.
While investors in Loop Mobile were nursing loses of about 13 per cent this week, ThinkSmart investors were breaking even.
The finance technology group raised more than $85 million through the issue of almost 40 million shares at $2.15 each, making it the biggest float of the quarter.
Its shares hit a record $2.40 but they have since slipped back to trade at its issue price, climbing back from a low of $2.04.
But its performance has been surprisingly better than many of its up-start resources counterparts.
The Ted Ellyard-backed oil and gas explorer, Key Petroleum, completed the second biggest public offering during the quarter, raising $19.2 million through the issue of 64 million shares at 30 cents each.
It hit a high of 31 cents on listing and its shares have since drifted south to 25 cents.
Even uranium seems to have lots its energy. There were 10 new uranium floats in the quarter.
Of those, only half continue to trade at a significant premium to their issue price.
Shares in RMA Energy Ltd shot up 240 per cent on debut and have continued their charge north. Investors who bought 25-cent shares through the company’s $4.25 million IPO were sitting on a paper profit of about 570 per cent this week.
Another strong performer has been United Uranium. Its shares climbed 150 per cent to 50 cents on debut on June 1 and are trading at about 45 cents, or a 125 per cent premium to its 20 cent issue price.
Peter Harold-chaired Territory Uranium Company Ltd is trading at 48 cents, up 140 per cent on its 20 cent issue price, while investors who bought 20 cent shares in Whinnen Resources’ IPO are sitting on a return of about 375 per cent.
Last week’s newcomer, Atom Energy Ltd, traded at a 77 per cent premium to its 30-cent issue price this week.
However, investors who failed to cash in quickly when Strike Resources’ spin-off Alara Uranium Ltd hit the boards are only just starting to see a return.
Alara’s shares opened at 40 cents – a 60 per cent premium to its initial public offer price of 25 cents – but have since fallen to 26 cents.
Oklo Uranium Ltd also had a quick, illuminating burst on the market, with its shares racing to 75 cents on its first day of trading, a 275 per cent premium to its 20 cent issue price.
But Oklo’s shares have since halved and were trading at 31 cents at the time of publication.
Uramet Minerals Ltd shares reached 35 cents – a 75 per cent premium to its 20-cent issue price – although its shares were trading at 24 cents at the time of publication.
Iron Mountain Mining Ltd shares were trading at its IPO price of 20 cents.
