There has been an almost unparalleled number of floats and other capital raising in the past six months, with nearly 30 Western Australian companies raising more than $130 million and accumulating a combined market capitalisation of more than $290 million.
Of the top performing IPOs, West Perth-based iron ore exploration Red Hill Iron Ltd’s share price has climbed 340 per cent on its 20 cents issue price since listing on February 14. Northbridge-based consulting engineers VDM Group listed on February 15 at an issue price of $1 and raised $8.2 million. As at June 23, the company’s share price was $1.79, returning a gain of 79 per cent on its issue price.
However, on the back of current market volatility, the share prices of about 60 per cent of the IPOs have dipped below issue price, with Subiaco-based financial services company Capital Intelligence Ltd and Kardinya-based Central Petroleum Ltd’s share price falling 50 per cent and 45 per cent respectively.
Spin off companies also made their presence felt with Helix Resources Ltd spin-off Platina Resources Ltd, Giralia Resources NL spin-off U308 Ltd and Red Hill Iron Ltd and Cape Lambert spin-off International Goldfields Ltd making their debut on the ASX in the past six months.
During the next month or so, eight WA companies are proposing to list on the ASX, the majority in the resources sector. Of the proposed IPOs, oil and gas explorer Austin Exploration Ltd is looking to list on July 11 after raising up to $10 million plus additional $2 million in oversubscriptions, while gold explorer Eleckra Mines Ltd is seeking raising up to $6 million and list as at June 30.
Olive oil producer Frankland River Olive Company Ltd is seeking to raise $5.8 million and list on July 11.
