The capital raising wave shows no sign of crashing with August’s total coming in at $4.7bn.
Once again resources companies raised more than any other sector — $163m of the $296m raised by companies with market capitalisations below $100m.
For companies with market caps above that, resources stocks raised over $1bn. However this was usurped by August’s largest deal, a $2bn raise by Sydney Airport (ASX:SYD).
August’s deals are also holding up strong, with the average company up 36 per cent since their respective capital raisings were completed.
Small cap deals
The most noteworthy deal was a $5m raise by medtech stock G Medical (ASX:GMV).
This is because after months of speculation, the company eventually announced it wanted to list on the NASDAQ — a move which would see it quit the Australian bourse.
Both stocks have become multi-baggers due to an e-commerce boom sparked by COVID-19 lockdowns, but both companies tapped investors for cash — $3.5m and $5m respectively.
In resources, investors are still looking for gold multi-baggers and several explorers with promising early results were able to raise capital.
Two companies with market capitalisations below $100m at the time of their offer — Dynamic Drill & Blasting (ASX:DDB) and health food company Forbidden Foods (ASX:FFF) — made their ASX debuts in August
Here’s a list of all ASX small and micro cap raisings completed in August (by date of securities listing on the ASX):
Swipe or scroll to reveal the full table. Click headings to sort.
Resources dominates larger caps
Among stocks with market caps between $100m and $500m, resources companies again accounted for a significant proportion of the capital raises done in August.
Already listed tech stocks raised their fair share of cash too.
The post Resources (again) leads the $4.7bn motza raised in August appeared first on Stockhead.
Barry Stroman was a reporter for Zerg Watch, before becoming the lead editor. Barry has previously worked for Wired, MacWorld, PCWorld, and VentureBeat covering countless stories concerning all things related to tech and science. Barry studied at NYU.