GemLife Communities Group (ASX: GLF) has listed on the ASX today, marking one of the biggest IPOs of the year.
The GemLife share price has gained more than 5% after debuting on the ASX at 12pm EST today.
The company, which operates resort-style communities for people over 50, was aiming to raise $750 million, with shares priced at $4.16 apiece.
At the time of writing, GemLife shares are changing hands for around $4.40 each.
Gemlife has stated it will use part of the funds to acquire its competitor in the over 50s accommodation space, Aliria.
Aliria is currently owned by Queensland developer, Adrian Puljich, who is also GemLife's Managing Director and Chief Executive Officer.
The GemLife listing is the third major IPO of the year and represents a shift in sentiment as companies appear to be increasingly opting for the IPO route.
The ASX has seen a significant reduction in new listings over the past few years as delistings increase, prompting warnings of a shrinking ASX amid an IPO drought.
In 2023, the ASX saw 45 listings, but that figure dropped to 28 new listings for 2024.
But things are changing.
IPO drought ends
Last month, two major listings demonstrated a renewed enthusiasm for ASX IPOs.
Virgin Australia Holdings Ltd (ASX: VGN) and Greatland Resources Ltd (ASX: GGP) both debuted on the ASX in June.
Virgin Australia's IPO raised $685 million through the sale of 236.2 million shares at $2.90 each.
And Greatland Resources raised $490 million at $6.60 per share through its IPO.
GemLife's listing will give the company a market cap of $1.58 billion.
What is GemLife?
GemLife was founded in 2016 as a joint venture between members of the Puljich family and Singaporean firm Thakral Capital.
The company is one of Australia's leading over-50s lifestyle resort operators with operations across Queensland, New South Wales, and Victoria.
GemLife's portfolio currently includes 20 communities and projects and would expand to 32 following completion of the Aliria deal.
The company reported a net profit after tax of $85.8 million for FY24 on revenues of $266.3 million.
In FY22, GemLife reported a net profit after tax of $72.8 million.
The company is forecasting a dip in profits to $84.2 million for FY25 before climbing to $104.7 million for FY26.
