Ausbiz – Why bigger isn’t necessarily better in the ASX IPO market

29 Oct 2021

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GQG Partners floated yesterday to plenty of fanfare and a giant valuation. But to Dean Fergie at Cyan Investment Management, the float yesterday was actually very telling – helped in part by why the share price fell five percent. As Dean points out – the local market has struggled to digest these larger IPOs. PEXA (PXA), Latitude (LFS), Pepper Money (PPM) and Keypath Education (KEY) are all underwater. Dean says this might not bode well for Judo Bank which is coming online in a couple of weeks and has raised $653m. Excess demand has become harder to find and new announcements, Dean says, are not convincing the market as much as it used to. The perfect example of all this? Nuix (NXL). Despite this, there is still an IPO every day on the ASX and it means there’s plenty of work to get through. One of those is a name that’s actually very close to our hearts here at ausbiz – BirdDog is set to launch within weeks and it runs all our cameras. Hope it’s ready for a picture perfect performance.