Over half of Q1 IPOs report losses
Of the 24 companies which listed on the Australian Securities Exchange in the first quarter of 2021, half have since reported double-digit losses.
There were 24 companies which listed in the three months to 31 March, 2021, six in both January and February and 12 in March.
This compared to just 12 companies choosing to list in the first half of 2020 amid the COVID-19 pandemic.
However, research by Money Management found 17 of these companies had reported losses since listing and 12 had reported double-digit losses.
The worst-performing stock was Torrens Mining which listed in early January and had lost 47% since then. This compared to returns of 4.3% by the ASX 200 and of 4.8% by the ASX Small Ordinaries index over the same period.
The company was the subject of controversy involving a drilling project in South Australia despite opposition by Aboriginal groups.
Other poor performers included EZZ Life Sciences which lost 36%, 3D Metal Forge which lost 32% and OzAurum Resources which lost 21%
On the other hand, Singular Health Group, which listed in February, had returned 36% and Pentanet, which listed in January, had returned 35%.
Medical technology firm Singular Health recently announced it had completed a deal with the Australian Government to develop an artificial intelligence medical technology for use on CT scans. Meanwhile, internet provider Pentanet had seen strong subscriber growth and was planning a cloud gaming launch.
AUTHOR
Laura Dew
Recommended for you
Lonsec and SQM Research have highlighted manager selection as a crucial risk for financial advisers when it comes to private market investments, particularly due to the clear performance dispersion.
Macquarie Asset Management has indicated its desire to commit the fast-growing wealth business in Australia by divesting part of its public investment business to Japanese investment bank Nomura.
Australia’s “sophisticated” financial services industry is a magnet for offshore fund managers, according to a global firm.
The latest Morningstar asset manager survey believes ETF providers are likely to retain the market share they have gained from active managers.
