Australia is relying on two billion-dollar listings to save it from the worst year on record for initial public offerings.
Companies have only raised about A$885 million ($572 million) through first-time share sales in the country so far in 2023, according to data compiled.
This comes after 2022, which was itself the slowest year for IPOs down under since 2012, with just A$1.1 billion raised.
Australia is banking on two listings worth a combined $2 billion to avoid having the worst IPO year ever.
IPO Market Pins Hopes
Australia’s IPO Market Pins HopesBankers are placing their hopes in the metals processor. Molycop and carrier Virgin Australia Airlines Pty Ltd.
Because they may raise a combined A$2 billion if they persist with their intentions. To list this year despite the unsettlingly slow IPO market.
The two have spoken with potential investors as part of their IPO planning. But it is still unclear if they will actually launch the deals before the end of 2023.
Marcus Ohm, a partner at the accounting firm HLB Mann Judd.
Stated in an interview that “it’s been a pretty hard Australia’s year, we’ve seen a huge drop off in activity.”
“IPOs are expensive endeavors, so if you choose to go down this road. You must be really confident that your bookbuild will be a success. If everything fails, there is also a reputational problem for these bigger corporations.
According to persons with knowledge of the situation who asked to remain anonymous because the information is confidential.
Molycop has started a non-deal roadshow with potential investors and is aiming. For a listing before the end of this year.