IPO numbers continue post-GFC recovery in FY11DOWNLOAD |
Wednesday, 6 July 2011: IPO activity in Queensland continued its post-GFC recovery in the year ending 30 June 2011 (FY11), according to new figures released today from the Deloitte Corporate Finance survey.
Queensland produced 11 IPOs in FY11, up from eight in the previous financial year.
The value of funds raised through IPOs soared from $509 million to $4.3 billion, thanks to QR National, the largest float for the year across all states.
| 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | |
| Amount raised ($m) (LHS) | 571.5 | 502.7 | 903.1 | 348.4 | 839.3 | 509.2 | 4,330.5 |
| Number of floats (RHS) | 15 | 15 | 12 | 20 | 3 | 8 | 11 |
Deloitte Corporate Finance partner, Robin Polson, said while QR National dominated the local action, Queensland was notable for generating four of the 10 largest IPOs of the year - QR National, ERM Power, NEXTDC and Onthehouse.
“Queensland also produced a significant number of all IPOs from the industrial sector. The state is producing a balance of resource and industrial IPOs at a time when resource floats are the only game in town in most states. It reflects well on the diversity of the state’s economy and our many sources of business growth.”
Queensland-based IPOs in FY11
| Company name | Listing date | Amount raised ($m) | Change versus issue price at 30/06/11 (%) | Industry |
| QR National | 22 Nov | 4,052.0 | 38 | Transportation |
| ERM Power | 15 Dec | 100.0 | -11 | Utilities |
| Onthehouse Holding | 3 Jun | 55.0 | -32 | Retailing |
| NEXTDC | 13 Dec | 40.0 | 70 | Software & services |
| Corporate Travel | 15 Dec | 21.7 | 95 | Commercial services |
| Redflow | 14 Dec | 17.5 | 25 | Commercial services |
| Alligator Energy | 3 Feb | 15.0 | -57 | Materials |
| China Magnesium Corp | 9 Nov | 12.0 | 30 | Materials |
| Polymetals Mining | 4 May | 7.0 | -20 | Materials |
| Daton Group | 7 Jan | 6.3 | 80 | Materials |
| Ausnico | 21 Oct | 4.0 | -69 | Materials |
Queensland-based IPOs achieved an average share price gain of 14%, which was slightly better than the national average of 11%.
Across the country, the Deloitte Corporate Finance IPO survey shows that FY11 produced 123 floats, almost double the number of IPOs in the previous financial year.
The value of funds raised from investors has also climbed strongly, up from $4 billion in FY10 to $7.6 billion in FY11, however, Mr Polson said the strong-looking numbers disguised a disappointing second half of the year for IPO activity.
“The value of funds raised reflected two big-value floats earlier in the year of QR National and Westfield Trust, which together raised almost $6.1 billion. The number of floats was boosted by activity in the resource sector, which produced 95 IPOs, or almost 80% of all the floats for the year.
“The successful listing of Queensland Rail in particular raised expectations for the IPO market in the new year, however, overall the market has failed to live up to these expectations, with many businesses foregoing a listing, often in favour of a trade sale. The equity market simply couldn’t match the valuation expectations of vendors or those achieved through private sales.”
| 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | |
| $billion raised |
1.981 |
4.269 |
10.788 |
10.174 |
13.247 |
10.550 |
5.884 |
1.149 |
4.011 |
7.555 |
| Number of IPOs |
60 |
55 |
151 |
174 |
169 |
221 |
201 |
28 |
63 |
123 |
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IPO numbers continue post-GFC recovery in FY11
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Contacts
- Name:
- Robin Polson
- Company:
- Deloitte Australia
- Job Title:
- Partner - Corporate Finance
- Phone:
- +61 7 3308 7282
- rpolson@deloitte.com.au
- Name:
- Dawn Willis
- Company:
- Deloitte Australia
- Job Title:
- Corporate Affairs and Communications Manager
- Phone:
- Tel: +61 2 9322 5562
- dawillis@deloitte.com.au