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:
Euro Manganese Inc (ASX: EMN)
The company describes its principal activity as the ‘evaluation and development of the Chvaletice Manganese Project, which involves the reprocessing of a manganese deposit hosted in historic mine tailings in Czech Republic’. It’s a Canadian-based business.
Manganese is important for the production of almost every type of steel. This accounts for about 90% of annual manganese demand. On average, a tonne of steel produced contains 0.5 to 1% manganese, and some speciality steel alloys can contain up to 15% manganese.
According to the company, manganese demand is rapidly increasing in the swiftly expanding field of rechargeable electrical storage, which enables safe storage of high energy capacity.
It’s looking to raise $5.2 million via CHESS Depositary Interests (CDI) at $0.26 per CDI and start trading today, 1 October 2018.
Nice-Vend Ltd (ASX: NVD)
Its principal activity is the manufacture and supply of stand-alone vending machines and textured frozen beverages.
The Israel-based food and beverage technology company has developed quinzee, a stand-alone, fully automatic vending machine. It prepares and serves an assortment of frozen beverages, it also possesses the ability to prepare sugarless frozen beverages, real fruit and other healthy drinks, that provide an alternative to the existing frozen soft drink options.
Two businesses trialling it are global tea giant Wissotzky, which is also an investor, and Caltex Australia Limited (ASX: CTX).
It’s looking to raise $7.5 million at $0.20 per share and then start trading on 2 October 2018.
Not many businesses are listing this week. Out of the two I’d rather invest in Nice-Vend, however I’d rather see a year or two of financial progress before committing any money to it. It does sound like it could be an interesting business, so it may be one to put on the watchlist for a while.
Instead, I’d put invest in proven market-beaters like these in the meantime.
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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.