Large caps dominate 2014 IPOs

Large caps dominate 2014 IPOs

Less than one per cent of initial public offerings in 2014 were launched by small-cap companies, according to a new report on emerging companies.

Of the $16.1 billion in funds raised via IPOs in 2014, over 49 per cent came from the listings of Medibank Private and Healthscope, according to the HLB Mann Judd IPO Watch report.

In total, large cap entities (ie, companies with a market capitalisation over $100 million) represented 99 per cent of all funds raised at $15.9 billion, said the report.

Sixty-seven per cent of ASX IPOs in 2014 were by large cap companies. This is a "substantial increase" on 39 per cent in 2013 and seven per cent in 2012, according to the report.

Speaking at a luncheon in Sydney yesterday, HLB Mann Judd  partner Marcus Ohm said there has been a "real shift towards larger stocks" – noting that, by contrast, 60 per cent of the money raised in 2012 came via small cap listings.

The total number of companies that listed in 2014 is also down on previous years, Mr Ohms said.

"Last year 58 companies listed on the ASX. That's down on the five-year average of 67 listings," he said.

At the time the report was written, 14 companies were "in the pipeline" to go to IPO, Mr Ohms said.

"Half of those in healthcare and biotech, with only a few resources companies. That sector's going to continue to struggle in first half of 2015," he said.


Large caps dominate 2014 IPOs
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