More than 90 companies have listed on the ASX since January 2013. No wonder it’s been hard trying to keep track of them all!
You probably won’t be surprised to learn that performance has been mixed, with 54 stocks recording current higher share prices, with 36 showing lower prices than their first day’s closing price (I’ve excluded resources companies and those with market caps less than $20m).
A number of companies have seen their share prices double, including Indoor Skydive Australia Group Ltd (ASX: IDZ), which is up 175% and IT company Rhype Ltd (ASX: RHP) up 100%. Following them are lawyers Shine Corporate Ltd (ASX: SHJ) with a gain of 81%, and then three property trusts, Asia Pacific Data Centre Group (ASX: AJD) rising 76%, National Storage REIT (ASX: NSR) up 40% and Arena REIT (ASX: ARF) up 36%.
Packaging group Orora Ltd (ASX: ORA) and hotels company Mantra Group Ltd (ASX: MTR) are both up around 34%. Another property trust, Rural Funds Group (ASX: RFF) and Virtus Health Ltd (ASX: VRT) with gains of 33% and 30% respectively, make up our top 10 best performing IPOs of the past two years.
|Company||Gain since first day’s closing price|
|Indoor Skydive Australia Group Ltd||175%|
|Shine Corporate Ltd||81.5%|
|Asia Pacific Data Centre Group||75.6%|
|National Storage REIT||40.5%|
|Mantra Group Ltd||33.7%|
|Rural Funds Group||33.3%|
|Virtus Health Ltd||29.5%|
Of course, had you managed to get hold of shares in the IPO rather than buying on market in the first day, you could have seen even better returns.
So what do the results tell us?
One lesson stands out.
Dividend yields are obviously a key driver of the performance of many of the stocks, given the large representation by real estate investment trusts (A-REITs). Trusts generally pay higher, stable yields and it’s clear that investors love their dividends.
That’s likely to continue and investors may want to keep an eye on upcoming IPOs paying decent (fully franked or unfranked) dividends.
We hear it over and over from investors, "I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" And it's true.
And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!
*Extreme Opportunities returns as of June 5th 2020
Motley Fool writer/analyst Mike King doesn't own shares in any companies mentioned. You can follow Mike on Twitter @TMFKinga
- Why PWR Holdings Ltd could see its share price rise from here – July 21, 2017 12:11pm
- Fortescue Metals Group Limited share price sinks on native title decision – July 20, 2017 4:23pm
- 5 overlooked finance shares to add to your watchlist – July 20, 2017 2:33pm