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After another slow year for IPOs in 2023 – following an equally dismal 2022 – the ASX is set to see a flourish of new company activity in the last month of the year.
Earlier this year, Morgan Stanley analysts predicted Australia’s IPO market would start to recover at the end of 2024. While that’s still a while off, investors can sink their teeth into a relatively active December.
No less than seven stocks are set to list on the market throughout this month – though, this list only features six. More on that in a moment.
Don’t forget the caveats
The last time The Market Herald wrote an IPO roundup, a number of stocks actually altered their listing dates – so keep in mind this list is only as accurate as the ASX IPO webpage, as of lunchtime on Friday 1 December.
The market for IPOs remains mixed.
A number of new listers this year have tanked, though, not all. Take Chariot Corporation (CC9) as an example – that stock has sucessfully bucked the trend.
Also: Arcadium Lithium, the new entity to be created as a merger between Allkem and Livent, has been redacted from this list.
Thematic benefits
Perhaps unsurprisingly, however, Chariot is a lithium miner – suggesting exposure to thematics is, as ever, a somewhat safer bet.
James Bay Minerals’ (JBY) post-IPO performance adds weight to this thesis, as does the performance of Pioneer Lithium (PLN).
Out of the 29 companies that have listed this year, as of Friday December 1, only 7 are in the green – a hit rate of 24%.
Perhaps a strategic focus on thematics is moreso reliable in one of the most convoluted periods of economic history that we’ve ever seen.
When investment bank analysts are as confused as punters, that isn’t a good sign.
Regardless, let’s dive into the month ahead.
Listings to watch through December
LTR Pharma (LTP)
- Listing date: 11 December 2023
- Issue price: 20cps
- Being raised: $7,000,000
- Sector: Healthcare
LTR pharma, to trade under the ticker code LTP, is a “clinical stage” drug development and research company.
Its flagship product is set to be a nasal spray designed to treat male erectile dysfunction (ED) – which the company describes as “first-in-class.” It advertises that its nasal spray works 10 minutes after dosage.
The company expects worldwide ED cases to reach 322 million by 2025, with a global market value of $7.10 billion to be realised in 2024.
LTR is chaired by Lee Rodne, the former CEO of Admedus Limited – now called Anteris Technologies (AVR) – a global healthcare company.
Eligible consumers may access the prospectus here.
Fuse Minerals (FSE)
- Listing date: 18 December 2023
- Issue price: 20cps
- Being raised: $10,000,000
- Sector: Materials
Fuse Minerals, to trade under the ticker code FSE, is a mineral exploration company targeting decarbonisation metals – with a focus on copper.
However, the geotech team also remains focused on gold and silver, as well as lead and zinc. Should they discover pegmatites, we can probably all guess where focus will pivot.
The company owns three projects – two in WA and one in QLD.
Fuse is chaired by none other than Warren Mundine AO – a former politician who has acted under both the LNP and ALP.
Mundine was most recently in the press for spearheading the “No” campaign on the Voice Referendum.
Eligible consumers may view the prospectus here.
Enlitic (ENL)
- Listing date: 18 December 2023
- Issue price: 83cps
- Being raised: $35,000,000
- Sector: Healthcare
Enlitic Incorporated, to trade under the ticker code ENL, is a health tech company intending to leverage AI to manage radiological imaging.
The company intends to firm up software capabilities that will allow medical practitioners to better handle workloads.
Enlitic also expects its AI tech to provide high-quality data for future research opportunities where based on inspecting medical images.
The company is chaired by Lawrence Gozlan, a former portfolio manager at Scientia Capital, and a biotech analyst in the early 2000’s.
Eligible consumers may view the prospectus here.
Brazilian Rare Earths (BRE)
- Listing date: 21 December 2023
- Issue price: $1.47ps
- Being raised: $50,000,000
- Sector: Materials
Brazilian Rare Earths, to trade under the ticker code BRE, is the owner of a “district scale tier 1 rare earths province” in northeast Brazil.
The company intends to leverage increasing global demand for REEs – particularly, or ideally, if those supply chains can subvert China’s market dominance in the sector.
The company has made no statements on that front itself, but the China issue is the biggest catalyst supporting critical mineral supply chain strategies.
Brazilian Rare Earths company is chaired by Todd Hannigan, and its CEO is Dr. Bernardo da Veiga.
The latter founded UK-based Alpha Minerals, an entity which advertises its “mission to develop a portfolio of critical minerals deposits.”
Eligible consumers may view the prospectus here.
Kali Metals (KM1)
- Listing date: 22 December 2023
- Issue price: 25cps
- Being raised: $15,000,000
- Sector: Materials
Kali Metals, to trade under the ticker code KM1, is a domestic prospective lithium explorer.
The company boasts acreage in WA’s Pilbara and Eastern Yilgarn regions, as well as the cross-border Lachlan Ford Belt, where it holds acreage in both VIC and NSW.
Interestingly: this company is the only lithium miner listing in December. One to watch.
The company is chaired by Luke Reinehr, currently the CEO of Kalamazoo Resources (KZR).
Kalamazoo will own a 55 per cent stake in Kali Metals.
Eligible consumers may view the prospectus here.
Australian Wealth Advisory Group (WAG)
- Listing date: 22 December 2023
- Issue price: 25cps
- Being raised: $5,000,000
- Sector: Financials
Australian Wealth Advisory Group, to trade under the ticker code WAG, advertises itself as a diversified financial services firm that “specialises in investing in wealth advisory businesses.”
The company highlights its specialty expertise in managing mergers and acquisitions in the Australian market landscape.
Headquartered in Melbourne, the company owns CHPW Financial and Armytage Private.
The company is chaired by Lee laFrate, the existing Chairman at Armytage. Across his nearly 40 year career, laFrate has acted as a stockbroker, and a Director for Prime Financial Group, among other positions.
Eligible consumers may view the prospectus here.
