WHY NOVUS CAPITAL?

is an investment and financial services company specialising in Investment Banking, Corporate Advisory and Share Trading services for Australian corporate and private clients, and overseas corporate clients.

CONTACT INFO
  • Address: Level 24, Royal Exchange Building, 56 Pitt Street, Sydney, NSW 2000 Australia
  • Phone: +61 2 9375 0100
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News and discussions from Novus Capital

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IPO Report 2016

Gavan Farley - Friday, June 17, 2016

 

In spite of a shaky start to 2016 for Australian and global markets, local IPOs are generally bucking the trend. 2015 saw:

  • 97 ASX IPO listings (up 33% over 2014), with a market capitalisation of $17.6 billion and capital raised in excess of $8.6 billion;
  • Technology and financial services were the dominant sectors and will continue to drive IPO activity over the next 12-18 months;
  • IPO performance continues to beat market expectation with average gains of 18% weighted by market capitalisation; and
  • Extended gains for 2014 listings, which closed the year 37% above their 2014 listing price.

Buoyed by a year of record IPOs and solid performance in 2014, the ASX finished 2015 with IPO performance firmly in positive territory, although the index itself was weighed down by energy and resources stocks. Weighted performance for the year's listings averaged 18.2% at the end of 2015 through the 97 new entrants to the ASX, with total market capitalisation of $17.6bn.

 

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Asia Pacific Equity Offerings Outpace Prior Year

Gavan Farley - Wednesday, August 12, 2015

Asia-Pacific equity offerings in H1 outpace prior-year period

The amount raised from both common and preferred equity offerings from Asia-Pacific banks increased in the first half compared to the first half of 2014.

In the first half, common equity offerings from SNL-covered Asia-Pacific banks generated US$16.05 billion, an increase of nearly 26.5% from 2014's first-half total common equity raised of US$12.70 billion.

The region's banks raised US$14.20 billion via preferred equity issuances in the first half, compared to US$347.1 million during the 2014 first half. It should be noted, however, that China, which has dominated preferred equity offerings so far in 2015, has only allowed for the issuance of preferred shares since April 2014. In total for 2014, Asia-Pacific banks raised US$29.53 billion through preferred equity issuances.

Banks headquartered in India saw the most common equity offerings in the first half with 15 offerings, followed by Australia and Taiwan with five and four offerings, respectively. Two countries saw banks issue common equity amounting to over 30% of total common equity offerings in the region. Australia led the way with banks issuing US$5.20 billion, or 32.42% of total common equity offerings, while China came in right behind with US$5.10 billion, accounting for 31.78% of all common equity offerings.

China-based CITIC Securities Co. Ltd.'s US$3.50 billion follow-on offering, which was completed June 23, was the largest common equity offering in the first half. The bank said proceeds from the offering will be used to supplement the capital base of the company to help develop its flow-based and cross-border business, build its platform and replenish working capital.

National Australia Bank Ltd.'s rights offering announced May 7, which was broken up into a retail component and a institutional investor component, came in as the second- and third-largest common equity offerings in the first half, respectively. The institutional component raised US$2.12 billion and was completed May 11. The retail component, which completed June 1, raised US$2.17 billion. The bank said proceeds from the offerings will be used to support the demerger of its U.K. banking units.