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IPO numbers continue post-GFC recovery in FY11


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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

 

 

 

 

 

Last Updated: 

Contacts

Name:
Robin Polson
Company:
Deloitte Australia
Job Title:
Partner - Corporate Finance
Phone:
+61 7 3308 7282
Email
rpolson@deloitte.com.au
Name:
Dawn Willis
Company:
Deloitte Australia
Job Title:
Corporate Affairs and Communications Manager
Phone:
Tel: +61 2 9322 5562
Email
dawillis@deloitte.com.au

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