15/01/2010 - 00:00

Positive end to ’09 raisings

15/01/2010 - 00:00

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AFTER a very quiet start to the year, the state’s primary capital market gathered pace towards the end of 2009 amid signs of growing investor confidence, especially for new resource projects.

Positive end to ’09 raisings

AFTER a very quiet start to the year, the state’s primary capital market gathered pace towards the end of 2009 amid signs of growing investor confidence, especially for new resource projects.

In the 12 months to the end of December 2009, 20 Western Australian-based companies made their way to the Australian Securities Exchange, raising a total of $123.5 million.

The bulk of the funds collected in the companies’ initial public offers came from the second half of the year, with $106 million raised in the December quarter alone.

Fourteen out of the 20 companies that listed in 2009 made a positive entry on their first day of trade, with West Perth-based explorer Luiri Gold the notable standout with its share price doubling on debut.

The positive momentum continued throughout the rest of the year, with the share prices of 14 of the companies ending 2009 on a high note, with Matrix Composites and Engineering and Norseman Gold ending the year at 105 per cent and 102 per cent, respectively, above their issue price.

Meanwhile, Subiaco-based oil and gas explorer Promesa delivered the worst returns, with its share price 55 per cent below the issue price.

State One Stockbroking executive chairman Alan Hill said it was an exceptional year.

“Normally when you get towards Christmas, there’s a slowdown in subscriptions, but last year there were deals flying around right up to the last minute,” he said.

A case in point was the State One managed IPO of Sydney-based company Australian Bauxite, which listed on Christmas eve, along with Perth-based uranium explorer Energia Minerals.

“It ended up being an exceptional year, after starting with a cloud overhanging the market, and then it really turned around in March and it never stopped,” Mr Hill said.

 

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