The initial public offering (IPO) market is running hot right now with a flood of listings and potential listings swirling around. The start of a new financial year brings with it an opportunity to reflect on a few of the more recent listings and consider if they will deliver good results over the coming year.
Here are three companies which recently IPO'd and could all be worth a closer look, particularly as their shares have not performed strongly since hitting the ASX.
Not much of a STAG profit here!
A stag profit refers to a 'successful' float where newly listed shares immediately begin trading at a price above their issue price – it's part of the appeal for many investors of jumping aboard IPOs, but as we will see in the following three examples, it's certainly no sure thing…
PAS Group Ltd (ASX: PGR) – The apparel wholesaler and retail operator, owns clothing brands including Review and Metalicus and also sells through department stores such as Myer Holdings Ltd (ASX: MYR). PAS is yet to see its shares trade above their $1.15 float price. The company has no debt and would be a beneficiary of a bounce back in consumer sentiment.
Asaleo Care Ltd (ASX: AHY) – The manufacturer and brand owner of hygiene products including Sorbent and Libra has got off to a reasonable start with the share price currently trading above the issue price of $1.65. Despite dipping in their first few days as a listed entity, on Wednesday the shares soared 9 cents or 5.5% to $1.74. However with the stock still within a whisker of the float price it's not too late for investors who believe there is a favourable outlook for this business.
Mantra Group Ltd (ASX: MTR) – Australia's second-largest provider of accommodation operates 113 properties and over 11,000 rooms via brands including Peppers, Mantra and BreakFree. Mantra raised around $240 million for the IPO at $1.80 per share. Having been listed now for over a week, the shares are still selling on market at $1.80.