Year-to-date comparison

A review of IPO activity from January to end-April 2022 shows 39 listings . These companies collectively raised $337.3 million and had a combined market capitalisation of $1.1 billion upon listing.

In the same period last year (January to end-April 2021), there were 34 listings. However, these companies collectively raised $1.3 billion and had a combined market capitalisation of $5.2 billion upon listing.

By volume, exploration companies have dominated 2022 listing activity. Strong growth in commodity prices in the first quarter was a tailwind for resource IPOs. 

Only four information technology companies have listed so far this year. The underperformance of tech stocks this year has been a headwind for global tech listings.

Halo Technologies Holdings (ASX: HAL) raised $40 million in its IPO and was capitalised at $159 million upon listing on ASX in late April. Halo is an online global equities research and trade-execution software solution for investors. 

Beforepay Group (ASX: B4P), a fintech company, had the second-largest IPO capital raising this year ($35 million) and the second-highest capitalisation ($108 million) at its January listing. 

Another tech-related listing, International Graphite (ASX: IG6), is developing a new source of battery anode material. IG6 raised $10 million through its IPO.

My Rewards International (ASX: MRI), a software-application-based business that provides loyalty programs, raised $5 million and was valued at $41.1 million at its February listing.

By comparison, 10 tech companies (including fintech) listed on ASX in the same period last year. They include some of that year’s largest listings; Airtasker (ASX: ART) and Latitude Group Holdings (ASX: LFS). Airtasker raised $83.6 million and Latitude raised $199.9 million, for a valuation of $2.6 billion upon listing.

Five early listing trends in 2022

1. Mining

As mentioned, mining has been the standout sector so far this year by listing volumes. Since the start of 2022, 20 mining listings have collectively raised $125 million. Their combined market capitalisation at listing was $317 million.

By capital raised, NICO Resources (ASX: NC1) is the largest mining IPO so far this year after closing its $12-million offer and listing in January. NICO is developing the Wingellina nickel-cobalt project in Western Australia. 

Far East Gold (ASX: FEG) raised $11.7 million and listed on ASX in March. Far East Gold is developing copper and gold projects in Indonesia and Australia. 

Felix Gold (ASX: FXG), developing gold projects in Alaska, raised $10 million and listed on ASX in January.

By market capitalisation, SensOre (ASX: S3N) is this year’s largest mining listing. SensOre is using company-developed technology to explore gold and other projects in WA. SensOre was capitalised at $60 million upon its ASX listing in February.

Lithium Plus Minerals (ASX: LPM) raised $10 million in its IPO and listed on ASX in late April with a $27.4 million capitalisation. Lithium Plus is exploring 19 granted exploration licences and has three exploration licences under application in the Northern Territory. The tenements are in an emerging lithium discovery province in the Bynoe and Arunta regions in the NT.

Another lithium explorer, Oceana Lithium (ASX: OCN), is expected to list on ASX on 27 May. Oceana Lithium has projects in Brazil and Australia. 

2. Oil and gas 

Higher oil and gas prices in 2022 have supported energy listings. 

Finder Energy Holdings (ASX: FDR) raised $15 million through its IPO and listed on ASX in April. The Perth-based company has exploration permits in hydrocarbon basins in the North West Shelf of Australia and the UK North Sea. Finder was capitalised at $31.5 million upon listing.

Top End Energy (ASX: TEE) raised $6.4 million through an IPO for its April listing. Top End holds interests in hydrocarbon and helium exploration projects in Queensland and the NT. Top End was capitalised at $13.9 million upon listing.

3. Healthcare 

Biotechnology IPOs have featured in listings activity, despite challenging market conditions for global biotech and healthcare listings year. Three firms have listed so far in 2022, but they are among the largest listings by market capitalisation.

Microba Life Sciences (ASX: MAP) raised $30 million and listed on ASX in April. Profiled separately in this issue of ASX On The Board, Microba is commercialising technology that measures gut health. The Queensland company was capitalised at $101.8 million at listing.

Pharmaceutical innovator Firebrick Pharma (ASX: FRE) raised $7 million and listed in January. Firebrick is developing a medical nasal spray that it says will be the first that targets the cause of the common cold and treats colds where they start (in the nose) – pending Therapeutic Goods Administration approval of the spray.

Elsewhere, Careteq (ASX: CTQ) listed on ASX in January after raising $6 million. The company was capitalised at $24.7 million at listing. Careteq is developing assisted-living technologies for the elderly and has acquired a medication-management business.

4. Niche Australian Real Estate Investment Trusts (A-REITs)

Niche A-REITs have been a growing segment of the A-REIT market in recent years as more companies raise capital to develop niche property assets such as self-storage, childcare centres, petrol stations, farms and data centres.

US Student Housing REIT (ASX: USQ) was capitalised at $106 million at its March listing on ASX after raising $15.5 million through an IPO. USQ seeks to own a portfolio of purpose-built, student-housing properties near leading public universities in the United States. The A-REIT’s initial portfolio consisted of 11 properties near eight universities in six US states.

5. Green materials

Chemical-related companies focused on developing materials for green energy have also featured in listing activity in 2022. 

ChemX Materials (ASX: CMX) raised $8 million through its IPO and listed on ASX in January with an $18.1 million valuation. ChemX has entered into an agreement to acquire HiPurA, the owner of an innovative High Purity Alumina (HPA) processing technology. ChemX says global demand for HPA is being driven by demand for lithium-ion batteries, as part of an increasing transition to renewable-energy sources.

In April, Noble Helium (ASX: NHE) listed on ASX after raising $10 million through its IPO. Noble is exploring for helium in Tanzania and aims to develop a commercially viable green helium source. Noble was capitalised at $36.6 million at listing.

Upcoming Listings

At end-April 2022, approximately 20 companies had upcoming listings on ASX.  They are mostly resource-exploration companies. 

Notable upcoming listings include Chrysos Corporation (ASX: C79), a provider of assay technologies and services for the global mining industry. Chrysos want to raise $183.5 million in its IPO and has an indicative market capitalisation (post-IPO proceeds) of $637 million. Chrysos is expected to begin trading on ASX on 6 May 2022.  It would be the largest IPO this year. 

Synergen Met (ASX: SH2) intends to raise up to $25 million through its IPO and list on ASX on 1 June 2022. Synergen, a thermal-plasma technology specialist, is developing and commercialising technology to create sustainable solutions to environmental problems.

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