The jump in assets raised was driven by the 13 large-cap firms which listed during the period compared to just one in the previous first half.
There was a particular dominance by the materials sector which accounted for over half of all IPOs thanks to 26 small-cap listings and five large-cap ones which raised $648.8 million. Following materials, the best-represented sectors were banks, and healthcare equipment and services.
Companies which met their subscription targets, some 87% of IPOs, tended to significantly outperform with those seeing full subscription recording an average of 25% in first-day gains. On the other hand, companies which failed to meet their target saw an average first-day loss of 7%.
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Marcus Ohm, HLB Mann Judd Perth, said the strong end to the year reflected the resilience of Australia’s economy amid particularly tough business conditions.
“COVID-19 brought with it a unique set of circumstances and the March and June quarters of 2020 saw historically low volumes with only 12 companies listing,” Ohm said.
“The June quarter in particular was heavily impacted by falls in the wider market and high levels of investor uncertainty.
“But there were signs of improvement by September, which was arguably reflected in Australia’s broader economic position, and the December quarter then experienced a resurgence in activity with volumes and funds raised being the highest in a single quarter since 2010.”