IPO activity in Western Australia continued to increase post the global financial crisis (GFC), according to new figures released from the Deloitte Corporate Finance survey. Western Australia produced 63 IPOs in the year ending 30 June 2011 (FY11), almost double the 33 IPOs in the previous financial year. The value of funds raised through IPOs also increased sharply, up from A$266 million to A$604 million. Of the ten largest of these IPOs, nine were in the resources sector.
Deloitte Corporate Finance partner, Andrew Annand, said Western Australia again generated more IPOs than any other state in 2010, and accounted for five of the 10 best-performing floats, again led by the resources sector.
|
2005 |
2006 |
2007 |
2008 |
2009 |
2010 |
2011 |
|
| Amount raised ($m) (LHS) |
495.7 |
1,500.8 |
1,776.6 |
1,312.8 |
101.2 |
265.7 |
603.9 |
| Number of floats (RHS) |
55 |
67 |
113 |
100 |
17 |
33 |
63 |
Ten biggest WA-based IPOs in FY11
| Company |
Date listed |
Amount raised ($m) |
Change versus issue price at 30/06/11 (%) |
Industry sector |
|
|
|
|
||
| Blackgold International |
22 Feb |
70.2 |
-38 |
Materials |
| Maca |
3 Nov |
60.0 |
145 |
Materials |
| McPherson’s Reward Gold |
24 Dec |
30.0 |
-7 |
Materials |
| GR Engineering Services |
19 Apr |
30.0 |
95 |
Capital goods |
| PMI Gold Corporation |
21 Dec |
27.5 |
-34 |
Materials |
| Haranga Resources |
9 Dec |
25.0 |
12 |
Materials |
| Universal Coal |
10 Dec |
20.0 |
-17 |
Materials |
| Dampier Gold |
23 Aug |
20.0 |
-40 |
Materials |
| Kimberley Rare Earths |
18 May |
18.2 |
-25 |
Materials |
| South American Ferro Metals |
16 Nov |
15.0 |
-56 |
Materials |
Across the country, the Deloitte Corporate Finance IPO survey shows that FY11 produced 123 floats, almost double the number in the previous financial year.
The value of funds raised from investors has also climbed strongly, up from $4 billion in FY10 to $7.6 billion in FY11, however, Mr Annand said the strong-looking numbers belied a disappointing second half of the year for IPO activity.
“The value of funds raised reflected two big-value floats earlier in the year of QR National and Westfield Trust, which together raised almost $6.1 billion. The number of floats was boosted by activity in the resource sector, which produced 95 IPOs, or almost 80% of all the floats for the year.
“The successful listing of Queensland Rail in particular raised expectations for the IPO market in the new year, however, overall the market has failed to live up to these expectations, with many businesses foregoing a listing, often in favour of a trade sale. The equity market simply couldn’t match the valuation expectations of vendors or those achieved through private sales.”
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