Australian IPOs 'bucking the trend'

According to Deloitte’s 2016 IPO Report, produced in collaboration with M&A intelligence provider Mergermarket 2015 saw:

• 97 ASX IPO listings (up 33 per cent over 2014), with a market capitalisation of $17.6 billion and capital raised in excess of $8.6 billion
• Market capitalisation down by 32 per cent (2014 included Medibank Private, the third-largest listing globally)
• Average gains of 18 per cent weighted by market capitalisation
• Extended gains for 2014 listings, which closed the year 37 per cent above their 2014 listing price.

According to Deloitte Corporate Finance partner and head of transaction services Ian Turner: “Volatility in China and falling commodity prices have created an unsettling environment for equity investors, but IPOs remained stock market darlings in 2015, dominated by the technology and financial services sectors.

“Growth was the theme common to the majority of listings, and the numbers certainly tell the story."

Tapan Verma, Deloitte director of IPO transaction services noted that while the 2016 outlook remains buoyant, it is significantly subdued in comparison with the last two years.

“The window for listings certainly remains open, although market volatility is expected to impact IPO valuations in the short term and result in more trade sale and dual-track M&A processes for some IPO candidates,” he added.

 “Technology and financial services, as well as consumer businesses that will benefit from lower Australian dollar and lower interest rates, will continue to drive IPO markets.”