Whilst there hasn't necessarily been any real blockbuster IPOs in recent times, a number of companies quietly hit the ASX boards towards the end of last year.
Three IPOs in particular caught my eye and are listed below. Here's how they have performed since their listing.
Automotive Solutions Group Ltd (ASX: 4WD)
This aftermarket products provider for the four-wheel drive market listed on the ASX in early December at $1.00. Since listing its shares have dropped 5% lower to 95 cents, meaning investors can pick them up for just over 10x forecast FY 2017 earnings. Management has forecast for earnings to grow by 7.5% this year and appears confident that this growth will be sustained for at least the medium-term thanks to favourable conditions in the fast-growing 4X4/SUV market.
Autosports Group Ltd (ASX: ASG)
Autosports is a prestige and luxury motor vehicle retailer with eight new and two used dealerships across Sydney, Melbourne and Brisbane. It listed at $2.40 in the middle of November and after a rocky start finds itself almost 7% higher at $2.56. Autosports has forecast pro forma net profit growth of 39% in FY 2017 thanks to a combination of organic and inorganic growth through acquisitions. At 19x estimated FY 2017's earnings, I believe it could be worth a closer look.
Murray River Organics Ltd (ASX: MRG)
This organic healthy snacks company listed on the ASX at $1.30 in the middle of December. Since listing it has drifted lower by 10% due to concerns over exports to China in the aftermath of the Bellamy's Australia Ltd (ASX: BAL) drama. Management has been quick to respond to concerns by reminding investors that China accounts for just 2% of its sales. I believe the company has a lot of potential, especially in the U.S. market which makes up a significant part of the estimated $104 billion a year global certified organic food and drink sales. At around 17x forecast FY 2017's earnings as per its prospectus, I feel Murray River Organics could be a good option for investors.
