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.
If any of the below shares sound interesting, you should read the prospectus to see if you want to invest.
According to ASX Ltd (ASX: ASX) there are a few upcoming listings:
Moho Resources NL (ASX: MOH)
Its principal activity is as a mining exploration company.
The company will have stakes in permits in three different projects – two in Western Australia and one in Queensland. The main minerals that Moho is looking to develop are gold and nickel.
It’s looking to raise $6 million at $0.20 per share and then start trading on 28 September 2018.
Montem Resources Limited (ASX: MR1)
Its principal activity is as a coal exploration and development company.
Montem Resources aims to explore and develop multiple coking coal mines from its existing ‘Chinook Properties’ in Alberta, Canada. The assets are based next to existing mines that have previously exported coal to Japan. The company is restarting the Tent Mountain mine, which is projected to start production within two years.
It’s looking to raise $20 million at $0.50 per share and start trading on 27 September 2018.
NB Global Corporate Income Trust (ASX: NBI)
Its principal activity is as a listed investment trust (LIT).
It looks to provide investors with stable and consistent monthly income with exposure to global high yield corporate bonds. It has a target distribution of 5.25% per annum after fees, paid monthly.
It’s looking to raise $500 million at $2 per share and then start trading on 26 September 2018.
I am personally not a fan of early stage resource companies. The early stage part makes them higher-risk and the resource element means they will likely be cyclical whilst not having control on the price it sells its materials for. NB Global Corporate Income Trust could be interesting for income seekers, but I prefer dividend shares to bonds.
Instead, I’d much rather invest in this top tech share if I were trying to maximise my investment returns.
Scott Phillips has stumbled upon a little-owned stock he believes could be one of the greatest discoveries of his 25 years as a professional investor.
This is your chance to get in early on of what could prove to be a very special investment recommendation. Think about how many investing trends you've missed out on, even though you knew they were going to be big. Don't let that happen again. This is your chance to get in early.
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.