Historically, IPOs were only offered to institutional and “high net worth” investor clients of brokers. But times have changed! With OnMarket, retail and self-directed investors have access to private capital raisings, listed placements, and IPOs!
A record year for the ASX 200 still wasn’t enough to beat the average IPO return at December 31 of 35.2%, outperformed by 16.8%.
Will Donald Trump ever end his trade war? Will Britain actually leave the EU? Is quantitative easing really a solution? How have OnMarket IPOs performed in 2019? Politics and macro-economics isn’t our forte, but capital raising is and this year has been outstanding for OnMarket IPOs returning an average of 57%.
In January 2018, I wrote a blog outlining a simple strategy that had produced pretty amazing returns over the previous 4 years. Recently, I spent a bit of time in the bush with no internet or TV. It got me thinking, how has it gone for the people that read the blog and started the strategy at that point in time?
In 2018 the average IPO was 11% higher at the close of the first day than the issue price. The 95 IPOs that listed in 2018 were up, on average, 8% one month after their respective listing dates.
We have recently completed our 100th transaction. OnMarket launched its B2C platform in October 2015, approximately 1,000 days ago. OnMarket, which is now approaching 50,000 members, provides retail investors with access to over one third of all IPOs on the ASX.
Not all IPOs are created equal. If you’re going to put your hard earned cash into the public float of a company, what are the markers of a good investment?
Continued surge in small-cap listings powers IPOs to an impressive 61.6% average return in 2017. Smaller IPOs on average up 69.8% outperforming large IPOs.
Well, back to the office and a new year beckons… oh, that sounds so much more chipper than I feel today. I’m going to wrap up this summer series in the next couple of days, but before I do, there’s a few more bits of analysis that I hope you’ll find interesting.
Let’s say you haven’t been one of the people investing in IPOs yet? You’re probably waiting for the right one, right? We hear that from time to time.
It’s the old classic investment banking trick … when describing returns, choose a time period that makes you look good.
Its been 4 years since we launched ASX Bookbuild and 2 years since the Prime Minister placed the first bid into an OnMarket IPO (it was my money, placed on my behalf). That was the initial public offering (IPO) of the Bitcoin Group…more on that in a few days, but for now, here’s what we’ve done (thanks to all the people that have bid into deals :-).
Companies that have undertaken an Initial Public Offering (IPO) this year have returned an average 25.9% for the nine months to September 30, an impressive 25.6% outperformance of the benchmark S&P/ASX 200 index which has returned 0.3% over the same period, according to the OnMarket 2017 Third Quarter IPO Report.