Although we haven't had any blockbuster IPOs in the last three months, there certainly has been a number of smaller listings that have impressed.
Three recent IPOs that caught my eye are listed below. Here's how they have performed since hitting the bourse:
The Auscann Group Holdings Ltd (ASX: AC8) share price has climbed 85% since listing on the ASX via a backdoor listing in February. Although there are a number of "pot stocks" now on the market, I believe AusCann is arguably the pick of the lot thanks to its strong management team and significant ties with Canada-based medical marijuana-giant Canopy Growth Corp. The company received a boost recently after Federal Health Minister Greg Hunt announced that the government would allow medical marijuana companies to distribute cannabis oils and medications in Australia in the very near future. It might be a little too early for an investment, but I believe it is definitely worth keeping a close eye on.
The Bubs Australia Ltd (ASX: BUB) share price is up 80% since its backdoor listing in January. Shortly after listing, the infant formula and baby food manufacturer's shares rose as much as 350% before profit-taking set in. Like AusCann I think Bubs is definitely worth keeping a close on. The company recently announced that supermarket giant Coles had significantly increased the number of stores stocking its Goat Milk infant formula. Furthermore, management advised that it had added Sigma Pharmaceutical Limited (ASX: SIP) to its wholesale distribution network. This now means Bubs has access to over 5,000 pharmacies nationwide.
The Freedom Insurance Group Ltd (ASX: FIG) share price has almost doubled in value since listing at the very end of last year. Freedom specialises in the development, distribution, and administration of life insurance products. Since listing on the ASX the company has upgraded its pro forma full-year guidance twice. Shortly after listing EBITDA guidance was lifted from $12.7 million to $16.9 million. Following a stronger-than-expected first-half this has now increased to between $18 million and $21 million. At around 14x estimated FY 2017 earnings I believe Freedom is up there with Suncorp Group Ltd (ASX: SUN) as one of the best options in the insurance industry.
