Australian investors have been literally flooded with initial public offerings (IPOs) over the past year with many more expected to occur in the lead up to December. It can be difficult to keep track of all the new listings and it can be a minefield deciding which floats offer good value and which don't.
In the recently released June Quarterly Review by fund manager Pengana Capital, the manager noted that the team had reviewed over 50 IPOs, but had only taken positions in six floats. While some of the companies Pengana decided to back are currently trading above their issue price, others are below.
Here are the six stocks which held appeal.
Burson Group Ltd (ASX: BAP) is a distributor of automotive parts and competes with Super Cheap Auto, owned by Super Retail Group Ltd (ASX: SUL). UBS Australia is forecasting earnings per share (EPS) growth of 10% in FY 2015.
Gentrack Group Ltd (ASX: GTK) has built an impressive business as a provider of billing and management software for airports and utility companies. UBS is forecasting EPS growth of 9% in FY 2015.
Intueri Education Group Ltd (ASX: IQE) provides vocational education and training services. Although it is focussed on providing a different service to that of leading education provider Navitas Limited (ASX: NVT). Investors also appear to be viewing Intueri as a growth stock with UBS forecasting EPS growth in FY 2015 of 18%.
iSentia Group Ltd (ASX: ISD) provides media monitoring services in Australia, New Zealand and increasingly in Asia. UBS is forecasting EPS growth of 10% in FY 2015.
Mantra Group Ltd (ASX: MTR) operates a portfolio of hotels with over 50% of its rooms located in Sydney and Melbourne. UBS believes Mantra will grow EPS by 17% in FY 2015.
Veda Group Ltd (ASX: VED) is a leading provider of consumer credit information. Veda has a wide, defensive moat which makes this stock particularly appealing. UBS is forecasting EPS growth of 10% in FY 2015.
