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Resource sector IPOs continue to be best performing |
Contact:
Bhavesh Morar
Deloitte
Energy & Resources Partner
0414 717 968
Contact:
Duncan Buckeridge
Insight Economics
(03) 9208 6912
Contact:
Anna Brown
Deloitte
Media & Communications Director
0419 214 913
Contact:
Steve Woosnam
Deloitte
Corporate Finance Partner
0414 607 531
Resource sector IPOs were again the five best performing and returned an average gain for their investors of almost 200%, despite being listed for an average of only seven weeks, according to the Deloitte IPO Report – Quarterly Update released today.
The report’s author, Deloitte Corporate Finance Partner Steve Woosnam said these exceptional returns were again driven by the resources sector, which accounted for all of the top five IPOs.
“Interest from investors in uranium was a key factor with three of the top five companies involved in uranium exploration,” he said.
“Resource companies accounted for the top 13 places in a ranking of all IPOs in the March 07 quarter by performance.
“The best performing industrial float was Cyclopharm, which gained 17% since listing,” Mr Woosnam said.
Energy & Resources Partner Bhavesh Morar said similarly the Australian Uranium Association (AUA) recently predicted continued uranium sector growth with exports forecast to exceed $1 billion per annum by the end of the decade.
“The AUA forecasts global demand to increase by 50 per cent in the next 25 years and that demand will exceed supply within the next decade, allowing an opportunity for Australia to double its uranium exports and double its uranium earnings within the next few years,” Mr Morar said.
Deloitte Insight Economics Partner Duncan Buckeridge said the strong returns in the resources sector IPOs mirrored the key role the sector is playing in broader Australian economic performance.
“While national economic growth was a relatively sluggish 2.8% in 2005-06, in the resources rich Northern Territory, Queensland and Western Australia economic growth rates were far higher, at 8.6%, 4.9% and 4.9% respectively,” Mr Buckeridge said.
“It should be noted that the Reserve Bank has recently endorsed the view that the resources boom has some distance to run and has predicted that the strong Chinese growth underwriting the expansion of the Australian minerals industry could last for decades.”
Download full media release below (includes resource table and IPO graph)
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Resource sector IPOs continue to be best performing
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