The 117 Western Australian companies to float on the ASX in the 2006-07 financial year have raised over $1.8 billion, up 19 per cent from the previous period, according to Deloitte's IPO Annual Report.
The 117 Western Australian companies to float on the ASX in the 2006-07 financial year have raised over $1.8 billion, up 19 per cent from the previous period, according to Deloitte's IPO Annual Report.
The floats this quarter of diversified financial services company Thinksmart Ltd and copper hopeful India Resources Ltd brought an additional $96.6 million into the State this quarter.
The full text of a Deloitte announcement is pasted below
IPO activity in Western Australia soared in the 2006-07 financial year, producing 117 IPO's to June 30, according to preliminary figures of Deloitte's IPO Annual Report.
Deloitte Perth Office Corporate Finance Partner Hugh Thomas said the number of IPO's from WA had nearly doubled in the current financial year, compared with 67 WA-based floats in 2005-06.
"The resources boom encouraged a lot of activity at the smaller end of the market, with the State seeing many small scale exploration floats producing some exceptional share price gains for investors," Mr Thomas said.
Across Australia, a record 226 IPOs are expected to list on the Australian Stock Exchange by June 30, up 34 per cent from 169 in the previous financial year.
"More than half of the companies to list on the Australian Stock Exchange in the 2006-07 financial year are based in Western Australia," Mr Thomas said.
WA-based IPOs raised $1.8 billion in the 2007 financial year, up 19 per cent from the previous year.
"The resources sector generated 103 of the 117 WA-based IPOs, but this amounted to only $604.8 billion or 34 percent of the funds raised by WA floats."
While many of the WA-based resources companies floated this year were at the smaller end of the market, the returns were generally high.
"Investors in WA-based IPOs achieved the best returns of all states. The average return of WA-based IPOs was 138 per cent, well above the national average of 89 per cent," Mr Thomas said.
Across Australia, the total value of IPO funds raised is set to decrease by 19 per cent from $13.2 billion to $10.6 billion. This is due to a drop in the number of IPOs to raise more than $1 billion, from four in 2005-06 to one in the current financial year.
The resources-led IPO boom produced extraordinary share price gains for many investors, overshadowing even the best returns of the dotcom boom of 1999-2000.
"One in every five IPOs to list on the ASX in the current financial year rewarded investors by at least doubling their money, while seven IPOs produced returns of more than 500 per cent," Mr Thomas said.
"By comparison, the returns at the high end of the market were relatively modest. The 10 largest companies to list on the ASX in the 2006-07 financial year produced an average return to investors of just 6 per cent, yet represented 60 per cent of all funds raised."
The 10 best performing IPOs averaged a 764 per cent increase. This compares favourably to the returns of the dotcom era, as measured by the average return of 500 per cent for the 10 best performing IPOs in 1999-2000.
The financial year's largest WA-based company to list on the ASX was Emeco Holdings, which supplies heavy machinery to the mining industry, raising $941.9 million.
WA also produced some very successful industrial company floats in the current financial year, including Nomad Building Solutions and Coote Industrial.
