2022 IPO recap: Just 29% of ASX IPOs in 2022 are trading above their listing price

Tue 03 Jan 23, 11:42am (AEST)
IPO 12 - Businessman hand holding IPO (Initial Public Offering) word with wooden cube block
Source: iStock

Key Points

  • There were 89 IPOs in 2022, down from 202 in 2021
  • The average new listing rallied 16.35% on its ASX debut
  • The average new listing from 2022 is now down -2.5% from its offer price

The hype around battery metals kept the ASX initial public offerings (IPO) market alive in 2022, with approximately 76 of the 89 new listings coming from the energy and materials sector.

The 89 IPOs represent a -56% decline from the 202 new listings in 2021, which was the biggest year for IPOs since the height of the mining boom in 2007.

Still, the numerous lithium, uranium and gold related listings kept numbers ahead of prior years including 2020 (72) and 2019 (63).

2022 Performance Recap

From a performance perspective, here are a few key highlights from 2022:

  • Average first day return: +16.35%

  • Median first day return: +5.0%

  • Average return since listing: -2.51%

  • Median return since listing: -22.50%

Note: Return since listing refers to the performance from IPO price to Friday, 30 December 2022

To add some perspective, here's the same for 2021:

  • Average first day return: +19.2%

  • Median first day return: +5.0%

And 2020:

  • Average first day return: +32.1%

  • Median first day return: +19.7%

The data tells us that the average and median first day performance from last year was relatively consistent with 2021. This was fuelled by several junior battery metal explorers that more or less doubled on their first day, including:

Still, the data also tells us that new listings generally peaked on their debut, with average and median returns since listing both in negative territory.

Of the 89 listings, only 26 or 29% are currently trading above their IPO price.

Things aren't pretty for the rest, with the remaining 63 stocks down an average -35.6%. Some of the worst performing names include:

The 2023 Schedule

According to the ASX, there are 7 companies scheduled to list in January. Unsurprisingly, 6 of them are from the materials and energy sector. Some interesting names include:

  • Gold Hydrogen

  • High-Tech Metals

  • Patagonia Lithium

It might be worth keeping an eye out for debut performances. Will battery-related explorers continue to experience a big debut rally or does the ongoing weakness across markets mean there might not be a pop at all?

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Written By

Kerry Sun

Content Strategist

Kerry holds a Bachelor of Commerce from Monash University. He is an avid swing trader, focused on technical set ups and breakouts. Outside of writing and trading, Kerry is a big UFC fan, loves poker and training Muay Thai. Connect via LinkedIn or email.

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