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A resource-led IPO boom in the latest financial year produced extraordinary share price gains for many investors, overshadowing some of the best returns of the dotcom boom of 1999-2000.

Preliminary figures for Deloitte’s Annual IPO Report 2006-07 found a record 226 IPOs were set to list by 30 June, up by 34% from 169 in the previous year.

The total value of funds raised is set to decrease by 20% from $13.2 billion to $10.6 billion, due to a drop in the number of +$1 billion IPOs from four to one.

The average share price gain was 89%, up from just 24% in the previous year, reflecting the strong returns from the resources sector in the year. However, the average return for all floats over $100m, representing approximately 75% of all funds raised, was more modest at just under 10%.

The odds of being among the winners also improved, with 75% of all IPOs trading at or above their issue price by the end of the year, compared to 54% the previous year.

Deloitte Corporate Finance partner, Steve Woosnam, said the latest financial year would be remembered as a year of some extraordinary share price gains.

“One in every five IPOs rewarded investors by at least doubling their money, while seven IPOs produced returns of more than 500%.

“The 10-best performing IPOs were all in the resources sector and averaged a 764% increase. This compares to the dotcom era where the average return for the 10 best performing IPOs in 1999-2000 was 500%.”

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