If the words initial public offering (IPO) pique your interest, the ASX-listed shares covered below might be worth a look.
These two companies made their ASX debut earlier this year. Since then, these ASX shares have outperformed the S&P/ASX 200 Index (ASX: XJO).
2 ASX shares bringing great returns
Airtasker Ltd (ASX: ART)
Australia’s leading marketplace for local services went public on 23 March 2021. Prior to hitting the public market, Airtasker’s IPO was heavily oversubscribed.
Between retail and institutional investors, the company reached more than five times oversubscribed.
Airtasker managed to raise $86.3 million through the issue of 23.1 million shares prior to listing. On its debut, the Airtasker share price skyrocketed from its listing price of 65 cents a share. Enthusiasm continued to gather, pushing the price as high as $1.96 the day after listing.
Since listing, this ASX share has gone on to raise a further $20.7 million to acquire US-based Zaarly Inc and fund international expansion efforts.
If you managed to get in on the Airtasker IPO at 65 cents, you are well ahead of the benchmark index. Airtasker has delivered a return of 77.7% from its IPO listing price. This compares to the index’s 8.8% over the same period.
Pentanet Ltd (ASX: 5GG)
Situated in Western Australia, this telecommunications provider raised roughly $22 million in its IPO in a bid to expand east.
Interestingly, the company differs slightly from other ASX telcos. Pentanet has a focus on delivering cloud gaming via its expanding network. This endeavour is underscored by a partnership with Nvidia Corporation (NASDAQ: NVDA). Pentanet is the only Nvidia GeForce NOW cloud-gaming alliance partner in Australia.
In the third quarter, the company delivered quarter-over-quarter customer growth of 15% — coming in at 10,993 customers. However, Pentanet is still unprofitable on the bottom-line.
Incidentally, the company announced a capital raise on 18 June. The $20 million proceeds will go towards its 5G development and expanding its Nvidia GeForce NOW cloud-gaming offering.
Anyone lucky enough to have grabbed shares in this ASX IPO has enjoyed fantastic returns to date. Based on today’s closing price, the Pentanet share price has delivered a return of 204%. Clearly, this successful ASX IPO’s returns blow the ASX 200’s 11.1% return out the water.