• News
  • 9 January 2019

We are happy to present our quarterly review of the mid-market IPOs on the ASX. 

The focus of the analysis is on the current quarter and the immediately preceding 12 months with the aim of providing you with an overview of the current mid-market IPO activity.

In our analysis we have looked at IPOs that had an enterprise value of less than $200m at the time of listing.  We have also provided some further detail on the cost of IPOs broken down by market capitalisation and the performance of IPOs occurring in the last twelve months by significant sectors.

Key highlights are:

  • There were 22 IPOs for mid-market companies in the quarter, an increase on both last quarter and the same period last year.
  • The mining sector remained the most active in the quarter completing 10 IPOs in the quarter.
  • The second most active sector was industrials, which completed 4 IPOs in the quarter.
  • Mid-market companies raised $286m on the ASX in the quarter. 
  • The average IPO fundraising was $13m, which is a 29% increase on the previous quarter, and a 15% increase on the 12-months average.
  • On average, transaction costs (excluding brokerage fees) decreased by 1.2% to $200k 


There were 22 IPOs in the mid-market this quarter, a 47% increase from last quarter and 69% increase compared to the same quarter last year. 

Total funds raised for the quarter was $286m, which is a 89% increase from last quarter, and a 94% increase when compared to the same period last year. The average funds raised per transaction this quarter increased by 29% from $10.1m last quarter to $13m, and when compared to the same period last year increased 15%. This quarter has seen the 12-month average increase by 12%.

The average enterprise value at IPO in the quarter was $35.8m which was down by 28% from last quarter and down by 5% from the same quarter last year.

Quarterly Activity

Of the 22 IPOs in the quarter, Mining Related was the most active sector, with 10 IPO’s recorded.  Industrials sector was the second most active sector with 4 IPOs completed this quarter.  There were no IPOs in the quarter for the Utilities, Financials or Real Estate sectors.

Of the $286m raised during the quarter, Mining Related recorded the highest value of funds raised, raising $76.3m, followed by industrials sector with $64.8m raised. This accounted for 49% of the total funds raised during the quarter. 


We have analysed the number of IPOs and average fund raising per sector over the last 12 months, in order to better understand the activity in each sector.

Although the Mining Related sector was the most active sector over the last 12 months, with 36 IPOs, the average funds raised is the second lowest of all sectors at only $6.5m per transaction.  Information Technology has also experienced strong activity with 12 IPOs completed over the last 12 months, raising an average of $13.1m per transaction.  The sector with the highest average gross proceeds raised is the consumer discretionary sector, raising an average of $33.8m with 4 IPO in the last twelve months.

Performance over the last 12 months

The spread in market capitalisation is quite wide across all industries for mid-market IPOs in the last year.  The Utilities sector, which is captured within the Other sector in the graph above, was the least volatile with only 1 IPO completed in the last 12 months, followed by the Energy sector (within mining related in the graph above), which had a spread of only 2%. Mining Related and Information Technology were the most volatile sectors, with a spread of returns of 307% and 215% respectively.

Materials related IPOs (within mining related in the graph above) were the best performing over the last 12 months with an average return of 16.8%.  Within the Minerals sector we have excluded Titomic Limited from our analysis as it was a major outlier with a 1423% increase in market capitalisation from $20.8m on listing to $317.2m at 30 June 2018.


Certain costs in undertaking an IPO, being accounting and legal costs, are typically fixed regardless of the outcome.  Fundraising costs, on the other hand, are generally paid on successful completion of the IPO and represent a percentage of proceeds raised.  Accordingly, fundraising costs have been excluded from our analysis.

A number of factors will impact the costs incurred, including how prepared the company is for the IPO, the complexity of its business and whether there are any related transactions.  Over the last year, the fixed costs for an IPO have averaged $200k compared to $202k for the corresponding 12-month period in the prior year.  
There were no transactions with a market capitalisation at listing of greater than $150m in the mid-market.


The analysis was prepared based on data sourced from S&P Capital IQ.  Data analysed is for completed IPOs on the ASX, from 1 July 2016 to 30 September 2018, with an implied enterprise value of less than $200m.  If no implied enterprise value was disclosed at the IPO filling date, transactions were adjusted to be the first enterprise value disclosed within the preceding 90 days.  In the 23 occurrences where no enterprise value was disclosed during this period, it was calculated by adding total debt at the filing date to the number of shares offered multiplied by the offer price. Of the 23 occurrences that were manually adjusted there were 14 instances where the value was not within 25% of the market capitalisation at the IPO date. 

Of the 81 transactions analysed for transaction costs there was sufficient data for 17% of the transactions to calculate the average accounting fees per transaction and there was sufficient data for 83% of the transactions to calculate the average legal fees per transaction.


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