27 Oct 2025
https://ausbiz.com.au/media/momentum-builds-in-small-caps-as-ipos-heat-up?videoId=44885
Key points:
Strong IPO activity emerging among Australian small caps
Upcoming Karma IPO seeks to innovate the used car industry
Advanced Energy Holdings prepares for ASX debut with unique subsea and battery business
Credit Clear (ASX:CCR) expands into the UK following recent acquisition and insider investment.
Dean Fergie from Cyan Investment Management sees a renewed vibrancy in Australia’s small-cap market, particularly with an uptick in IPO activity in industrials not seen for several years. Fergie points to the forthcoming listing of Karma, an Australian company aiming to modernise the fragmented used car sector. Karma plans to offer a premium refurbished vehicle experience, drawing comparisons to US-listed Carvana, which has surged remarkably in recent years. The company, still in its early loss-making phase, has raised $100 million and targets a market cap of around $770 million, with its listing anticipated soon.
Fergie also highlights Advanced Energy Holdings, a UK-based subsea infrastructure business focusing on buoyancy protection and battery testing. Though Advanced Energy Holdings has no local operations, Fergie notes its $100 million capital raise and $450 million market cap position it as a quality business, thanks to consistent EBITDA margins and potential automotive battery deals. The shares could offer medium-term promise if trading conditions are favourable post-listing.
Turning to Credit Clear (ASX:CCR), Fergie identifies it as an attractive play within the debt collection sector, especially after acquiring UK-based Arc Europe. He cites strong industry growth, a well-funded expansion, and significant insider buying as reasons for optimism about Credit Clear’s medium-term prospects.