22/12/2011 - 10:06

Listings come late for Perth companies

22/12/2011 - 10:06

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Listings come late for Perth companies

Twenty Perth companies are set to list on the ASX next year, but for most the 2012 listing comes later than expected.

Of the 21 Perth-based companies mentioned on the ASX’s ‘upcoming floats’ list, 18 were originally expected to have listed by the end of 2011.

Morocco-focused oil explorer Pura Vida is set to list on December 23, however the other 17 companies have postponed joining the ASX until the new year due to minimum subscription from their initial public offering (IPO) not being met.

A majority of the companies’ minimum subscription is around the $3 million mark.

South African-focused coal bed methane explorer Sunbird Energy is one of few companies to defy the postponement trend, closing its $9 million IPO this week early and oversubscribed.

The company is set to list in mid-January.

Seven of the companies named on the ASX website have passed their IPO close date and expected listing date without word from the company of where they stand.

The upcoming floats are strongly resource exploration-based, with medical technology developer Cortical Dynamics the only company outside the resource sector.

Cortical have had to extend their IPO three times due to "market volatility", with the offer now closing on April 30.

According to figures released by Deloitte on Tuesday, the number of IPOs in WA increased from 51 to 57 in 2011, however the average raised per float was down from $10 million to $7.5 million.

The overall capital raised declined from $514 million in 2010 to $428 million in 2011, still a long way from pre-GFC highs of close to $2 billion.

Deloitte corporate finance partner Andrew Annand said numerous postponements through the year had created a backlog of Australian companies waiting to list on the ASX.

“Market conditions will dictate the size of the IPO market (next year) and the outlook remains tough, however from a supply perspective, the signs are positive if market conditions continue to improve,” he said.

“It is also interesting to note that the increasing involvement of Asian buyers in the Australian market has created another option for Australian businesses looking to exit or raise capital, and this may reduce the number of Australian businesses looking to list on the ASX as better value may be obtained elsewhere.”

On a national level, less than one third of company shares floated in 2011 are trading above their issue price.

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