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4 recent IPOs you need to know about

Initial Public Offering (IPO)

Whilst there hasn’t really been any blockbuster IPOs this year, in recent weeks there have been a number of new listings hitting the ASX boards that I think are worth keeping an eye on.

Here are four that caught my attention:

Bingo Industries Ltd (ASX: BIN)

This waste management company listed on the ASX at $1.80 per share last month. Since then trading in its shares has remained rather subdued and its shares are just a touch higher at $1.81. But as far as Macquarie is concerned, there is significant upside potential. Brokers at the bank recently slapped an outperform rating and $2.33 price target on its shares. I like the defensive nature of the waste management industry and think Bingo could be worth a closer look.

Cann Group Ltd (ASX: CAN)

This medicinal cannabis company listed at 30 cents per share in May and has more than doubled in value since then. Cann Group is focused on the breeding, cultivating, and manufacturing of medicinal cannabis for sale and use within Australia. It was the first company in Australia to be granted a licence to research and cultivate medicinal cannabis. Whilst I think it has a strong management team and a lot of potential, I feel it is still too early to invest in the company.

Kelly Partners Group Holdings Ltd (ASX: KPG)

The shares of this provider of accounting and taxation services to private small and medium enterprises have performed very strongly since hitting the ASX boards at $1.00 per share. After a series of gains, its shares last closed 45% higher than its IPO price at $1.45. With a market cap of $65 million and the company forecasting net profit after tax of $9.3 million in FY 2018, I feel Kelly Partners still looks cheap even after its strong gain.

Oliver’s Real Food Ltd (ASX: OLI)

This organic fast food company hit the ASX boards with a listing price of 20 cents last week. Since then its shares have climbed 35% higher to 27 cents per share. Whilst I am a big fan of the company and believe it has a lot of promise, I would suggest investors hold off an investment for the time being. If the company can live up to its prospectus forecasts, then it will no doubt prove to be a bargain buy. But it certainly has set the bar high. This year management expects to post a $1.2 million EBITDA loss (excluding IPO costs), before swinging to an EBITDA profit of $4.8 million in FY 2018.

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Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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