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
Women are expected to inherit US$124 trillion through the intergenerational wealth transfer, but Capital Group has found they are twice as likely to rely on social media for advice over a financial adviser.
Challenger Investment Management has raised $350 million during the offer period for its new ASX-listed investment structure.
A week after Lonsec downgraded multiple funds from Metrics Credit Partners, rival research house Zenith Investment Partners has opted to retain its ratings for the same funds.
Strong adviser engagement has helped Praemium reach $1 billion in inflows on its Spectrum offering, with a deal with Western Australian wealth firm Euroz Hartleys expected to add as much as $2 billion.
