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:
Australian Governance and Ethical Index Fund (ASX: AGM)
Its principal activity is investing, seeing as it’s a fund.
It looks to give investors exposure to a portfolio of Australian equities that exhibit strong governance frameworks, undertake sustainable operating practices and are committed to overall corporate social responsibility. Of course, it also wants to create long-term capital growth.
The total expense ratio will be 0.19% per annum, which is low, however it said that it’ll be investing in 75 to 85 of the ASX 100 shares so there won’t be too many investing decisions to be made.
Calix Limited (ASX: CXL)
Its principal activity is to develop products and applications from R&D of its existing family of patents regarding the Calix Flash Calciner.
Calix says that it uses a patented kiln to create minerals, which are safe and environmentally friendly, to improve waste water treatment and phosphate removal, help protect sewer assets from corrosion, and help improve food production from aquaculture and agriculture with reduced anti-biotics, fungicides and pesticides.
It’s looking to raise $8 million at $0.53 per share and then start trading on 20 July 2018.
Coolgardie Minerals Limited (ASX: CM1)
Its principal activity is mineral exploration.
The company is looking to develop the gold and mineral potential of the Bullabulling Project Area, near Kalgoorlie in Western Australia.
It’s looking to raise $6 million at $0.20 per share and then start trading on 18 July 2018.
Kingwest Resources Limited (ASX: KWR)
Its principal activity is mining.
Kingwest Resources’s focus is gold exploration in the Eastern Gold Fields Region of Western Australia.
It’s looking to raise $5 million at $0.20 per share and then start trading on 19 July 2018.
None of these businesses are jumping out at me as investment picks. I’m personally not a fan of resource companies and Australian Governance and Ethical Index Fund doesn’t sound like it’s offering something exceptionally unique.
I hope that Calix is successful as its products sound like it would do the world some good if it achieves its goals. However, I’d want to see some sustainable profit growth before considering investing.
For now, I’d rather put my investment money towards one of these top share ideas.
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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.