FRIDAY 4 October 2024: The IPO Network is pleased to release the September 2024 quarterly report of companies listing on the ASX, highlighting IPO activity in the first quarter of FY2025.
IPO’s in Review
A quarterly summary of companies listing on the ASX
New
listing activity in the Australian stock market was quite subdued during the September 2024
quarter (Q1 FY2025), with just four new stocks listing on the ASX over this period. The largest stock
joining the ASX over the period was Bhagwan Marine Limited (with a current market cap of $169m).
Market Commentary
- Major stock market benchmarks were mostly higher. Key Australian and US equity indexes went materially higher over Q1 FY2025. Both the S&P/ASX 200 and Small Ordinaries indexes advanced by around 6% over the quarter, the former index’s gain led by buying across its Info Technology, Real Estate, Communication Services, Industrials and Materials sectors. Despite some rotation out of Financials into Materials, the former sector managed good gains over Q1 FY25. The Energy sector was the only major laggard over Q1 FY25, as oil prices sagged.
- Central bank rate cuts and Chinese economic stimulus feed stock market gains. Moves by several overseas central banks to reduce their benchmark interest rates over Q1 FY25 fed gains in major stock markets. These rallies were given extra impetus by economic stimulus initiatives unveiled by China, which aim to bolster its faltering economy. In Australia, the RBA continued to talk down the chance of a calendar 2024 rate cut while underlying inflation remains above its target range of 2-3% pa. Geopolitical risks, headed by the ongoing Ukraine/Russia and Middle East conflicts have, to date, failed to cause any spike in energy prices. The US Presidential election in November 2024 took another turn in early Q1 FY25, with incumbent President Joe Biden withdrawing from the contest, with current Vice President Kamala Harris taking his place.
- Only 4 new companies listed on the ASX in Q1 FY2025, details of which are provided in the attached table. Just 1 of these stocks has a market cap greater than $150 million.
- Q1 FY2025 IPOs were mostly Materials-related. 3 of the 4 Q1 FY2025 IPO stocks were Metals & Mining companies. The remaining IPO, Bhagwan Marine, is an Industrials (Transportation) sector stock.
- Most of these recent IPOs have retreated since listing. As at early October 2024, 3 of the 4 companies listing in Q1 FY25 were trading below their respective IPO issue prices. The exception was Ordell Minerals, which is currently around 15% above its IPO issue price.
- The IPO market is set to pick up in Q2 FY25. 8 new IPOs are currently expected to list in Q2 FY2025. 5 are metals & mining sector companies The other 3 prospective IPOs are a propertyfocussed listed investment fund, a cosmetic clinic business and a merino wool company
IPO listings by market cap since start of Q1 FY2025
| Company | ASX Code | Market Cap (AU$M) |
| Bhagwan Marine Limited | BWN | 169 |
| Piche Resources Limited | PR2 | 11 |
| Ordell Minerals Limited | ORD | 8 |
| Axel Ree Limited | AXL | 7 |
Potential IPO pipeline
| Company | Focus | Size (AU$m) |
| Metrics Real Estate Multi-Strategy Fund | Listed investment fund | 300.0 |
| CleanTech Lithium | Lithium | 20.0 |
| Everlast Minerals | Mineral sands | 20.0 |
| Tungsten Metals Group | Tungsten | 14.0 |
| Stormeur | Cosmetic | 10.0 |
| Fulcrum Lithium | Lithium | 10.0 |
| Siguiri Gold Corp | Mineral exploration | 10.0 |
| Merino & Co | Merino wool | 7.5 |
About IPO Network
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