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:
1414 Degrees Limited (ASX: 14D)
The company describes its principal activity as commercialising energy storage technology, thermal energy storage system providing a low cost solution to intermittent energy supply and recovering electricity through a turbine on demand.
According to the company, current storage solutions focus on storing and output of electric power, whereas the 1414 Degrees technology delivers an output of heat as well as electric power. Electricity is sourced from renewables or the grid, and is stored as latent heat at constant temperature. The energy is then dispatched on demand.
Apparently, this system is unlike any other energy system in the world. However, it’s still at an early stage of product development and commercialisation.
It is trying to raise $50 million at $0.35 per share and then start trading on 29 August 2018.
archTIS Limited (ASX: AR9)
Its principal activity is consulting on secure information sharing and cyber security platform design.
archTIS provides a variety of products designed to help organisations share and collaborate, in a safe and secure environment.
Some examples include a product for government classified information, a product for mobile deployment or isolated teams and a cloud service for businesses to share high-value information.
It sounds like it’s a competitor to Citadel Group Ltd (ASX: CGL).
It’s looking to raise $10 million at $0.20 per share and then start trading today.
Both businesses sound like they have compelling products to offer. It’s a bit early for me to personally invest in either of them, but if they get some runs on the board they could become interesting investment opportunities.
Until they have reported some encouraging reports, I’d rather buy shares of one of these top stocks for my portfolio.
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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 and Citadel Group Ltd. 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.