Page 22 - pd301-Feb22-mag-web_Neat1

coVeR

The Year

of the IPO

or the first time in 14 years, floats to be unsustainable, particularly Of the 106 new companies to undertake
F the number of new metals against a backdrop of labour shortages, a successful IPO in 2021, 76 were admit-
low contractor availability and increasing
ted to the ASX during the second half of
and mining companies admitted costs. the year, including 12 in December alone.
to the ASX exceeded three There does not appear to be an obvious The IPO Class of 2021 raised a col-
figures. Without question, 2021 slowing in the pipeline of new resources- lective $1.56 billion, with the EMR Capi-
tal-backed 29Metals Ltd ($527.8 million)
related IPOs, however, with at least 20
was the Year of the IPO. companies waiting to make their ASX de- comfortably the biggest contributor. Gold
but over the coming months. developer Tulla Resources plc was the
BDO global head of natural resources next best with a $78.3 million float, fol-
Sherif Andrawes is one who cannot see lowed by the likes of Genmin Ltd, Miner-
the heat coming out of the IPO market als 260 Ltd and Falcon Metals Ltd (all $30
t seemed no matter where you turned, anytime soon. million).
Ithere was no escaping a connection to “We still have a very healthy pipeline Andrawes said while the volume of
the plethora of new resources floats being going into 2022,” Andrawes told Paydirt. capital raised by IPO companies was not
spruiked. Whether it was an executive with “I struggle to go beyond three months at particularly surprising, the relative ease
an asset they wanted to list or spin off, or any time, whether it’s the strongest time or with which most were able to reach their
perhaps a longstanding family-owned min- the weakest time, but looking out to March funding targets was unlike any other year
ing services group sensing a rare opportu- and this first quarter we’re certainly going in recent memory.
nity to go public, everyone was positioning to see quite a few more companies listed. “It was certainly a surprise how con-
for a slice of the action in the most buoyant “Often when you’re going through these sistent it was, in that so many companies
of IPO markets. times of increased IPO activity, you’re managed to raise the money they needed
As with past IPO windows, the honey- thinking maybe it’ll last a few months, so quickly, often closing early or raising
moon period for the 106 companies which you’re never quite sure exactly how long. more than they were initially looking for,”
joined the bourse last year will eventually But we saw this run of IPOs continue right he said.
come to an end. Equity research firm Ar- through the year. In fact, it probably got “Quite a few of the IPOs we were work-
gonaut Securities Pty Ltd has already de- stronger as the year went on.” ing on, they were looking for a certain
clared the unprecedented volume of new

Page 22 FeBRUaRY 2022 aUSTRaLIa’S PaYDIRT