Each week I like to look at the upcoming IPOs which are happening on the ASX. It gives me a chance to see if there are any future stars being listed and perhaps get in early on that success story. Every single share that currently trades on the ASX was a newly-listed share at one point, they should not be avoided just because they are new. A new float is usually when a private company is looking to sell a small or large portion of the business to new investors. The funds are typically needed for the growth of the…
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Each week I like to look at the upcoming IPOs which are happening on the ASX. It gives me a chance to see if there are any future stars being listed and perhaps get in early on that success story.
Every single share that currently trades on the ASX was a newly-listed share at one point, they should not be avoided just because they are new.
A new float is usually when a private company is looking to sell a small or large portion of the business to new investors. The funds are typically needed for the growth of the business, such as buying property, funding product development or making an acquisition.
According to ASX Ltd (ASX: ASX) there are a few upcoming listings:
Marley Spoon AG’s (ASX: MMM)
Its principal activity is the supply of semi prepared meals to consumers, distributors and other commercial or private customers.
Many readers may be already aware of Marley Spoon and its operating model, it does have competitors doing similar things. Customers pay for pre-portioned fresh ingredients in a chilled box that are sorted into bags by recipe. Each meal comes with easy-to-follow recipe cards with photos that make it easy to cook the meal.
The concept may be good, but the business has been losing money for the last few years, so it could be a wait before we start to see profit being made.
It was looking to raise $70 million at $1.42 per share, it started trading yesterday.
Pivotal Systems Corporation Inc. (ASX: PVS)
Its principal activity is as a developer and provider of gas flow control solutions to the semiconductor industry.
According to the company, its proprietary hardware and software utilizes advanced machine learning to enable preventative diagnostic capability resulting in an order of magnitude increase in fab productivity and capital efficiency for existing and future technology nodes.
It has manufacturing facilities in the United States and Korea, and the company has annually doubled its total unit production each year since 2014.
It’s looking to raise $56 million through CDIs at $1.86 each and it started trading yesterday.
Primero Group Limited (ASX: PGX)
Its principal activity is as an engineering contracting company, specialising in providing engineering design and construction services to the minerals, energy and infrastructure sectors.
From concept to completion, the company says its multi-disciplinary skills provide enhanced performance throughout the total project lifecycle.
It’s looking to raise $25 million at $0.40 per share and start trading on 6 July 2018.
RMA Global Limited (ASX: RMY)
Its principal activity is as an online marketing platform for real estate agents.
It owns RateMyAgent, which operates in Australia, America & New Zealand and the real estate auction tipping app, Property Tycoon. RateMyAgent helps real estate agents stand out from the crowd if they’re rated highly by their clients.
It’s looking to raise $12 million at $0.25 and then start trading on 5 July 2018.
All of these businesses are interesting ideas this week. Marley Spoon has the potential to be a very good business if it can turn its model into a profitable business.
I know little of the industries that Primero and Pivotal Systems operate in. They may turn out to be good investments but they’re outside my ‘circle of competence’.
However, they are all too new for me, I’d rather go for one of these top shares that have good long-term growth potential and are already profitable.
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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of ASX Limited. 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 Scott Phillips.