Capital Raises Fortnightly Wrap - 22/11/2021

The second and third weeks of November coincidently had the same number of placements, with 22 companies from 5 different sectors in week 2, and 22 companies from 6 different sectors in week 3 raising via placements across the market. The amount raised was a different story entirely with $247m raised in Week 2, and a hefty $563m in Week 3, close to double the funding of the prior week with the same amount of placements. As expected and consistent with prior observations through our weekly wrap, the materials sector stands alone and ahead of the rest in both weeks, with a substantial $92m and a blistering $426m raised across week 2 and 3 respectively via 26 seperate placements. There were several placements which contributed largely to this raise total including a hefty $240m placement by BCI Minerals Limited (ASX:BCI), with funds raised to be used to develop the Mardie Salt & Potash Project.

We also saw the return of the communications sector in Week 3 with a $25m placement from Playside Studios Ltd (ASX:PLY), an Australian-based video game developer. Funds are to be used towards a variety of growth opportunities, including the establishment of a dedicated R&D team to pursue opportunities in the rapidly evolving Metaverse space. The technology sector had several placements in Week 2 but pulled back quite heavily in Week 3 in terms of frequency. This was exhibited in a significant $26m placement in week 2 by Weebitnano (ASX:WBT) with funding to underpin accelerated growth, pursuit of business opportunities, and research and development in embedded and discrete projects. Despite week 3's drop in placements for the technology sector, there was a significant $40m placement from iCandy Interactive Limited (ASX:ICI). An interesting observation is that Animoca Brands increased its stake in ICI by a further $10m investment through the placement, with the firm having a significant focus on developing the Metaverse space. It's fascinating to see the flow-through of funds through the capital markets in adjacent industries following Facebook's announcement of developing the Metaverse and we suspect the space is one to watch in the years ahead as planned features within this digital universe become tangible. You can read further on the Metaverse here.

Weekly Placement Overview

15/11/2021

22/11/2021

*Placements are limited to those which left a trading halt between 8/11 and 21/11. You can view our current offers here.

Weekly Sector Breakdown

15/11/2021

22/11/2021

For a more detailed look at how the ASX sectors are performing check out: https://www.freshequities.com/ASX/sectors 

90 Days Post Placement Performance - 15/11/2021

Looking back on the past 90 days for Week 2 to see how companies have performed post placement takes us to the first week of July, which saw 13 placements undertaken. Avz Minerals Ltd (ASX:AVZ) sprinted ahead of the rest with a monster increase of 257% from its issue price.

Best Performers

• Avz Minerals (ASX:AVZ) peaked at a whopping 257% increase 90 days post raise.

• TYMLEZ Group Ltd (ASX:TYM) saw an early 190% increase 7 days post raise before settling down and spiking to a near identical 180% increase 90 days post raise.

• Andromeda Metals Ltd (ASX:ADN) peaked at a 43% increase 81 days post raise, before settling down to a 13% increase 90 days post raise.

Worst Performers

• Hawsons Iron Ltd (ASX:HIO) held a 8% increase 25 days post raise before sinking to a 47% decrease 90 days post raise from issue price.

• Maas Group Holdings Ltd (ASX:MGH) saw a fairly uneventful 17% decrease from issue price 90 days post raise.

• Buddy Technologies Ltd (ASX:BUD) saw a slow and consistent 40% decrease from issue price 90 days post raise.

90 Days Post Placement Performance - 22/11/2021

Reviewing the 90 day post placement performance for Week 3 takes us back to the second week of July (8/7/21 to 14/7/21), which saw 10 placements undertaken. The top performers were surprisingly close throughout the 90 days, with Okapi Resources Limited (ASX:OKR) leading the charge before being trumped by KneoMedia Limited (ASX:KNM) at the end of the 90 days. This weeks review also saw only a single negative post placement performance from Frugl Group Limited (ASX:FGL), as the other two worst performers stayed at least par with their offer price.

Best Performers

• KneoMedia Limited (ASX:KNM) saw a peak of 233% at 76 days post, before pulling back slightly to an impressive 200% 90 days post raise.

• Okapi Resources Limited (ASX:OKR) saw a blistering rise to 265% 45 days post, before sliding back to 140% 90 days post raise.

• Fertoz Limited (ASX:FTZ) stayed slightly further back compared to the other two best performers, peaking at 193% 47 days post before settling down to an objectively tremendous 137% 90 days post raise.

Worst Performers

• Frugl Group Limited(ASX:FGL) saw a 42% drop 90 days post raise, and was the only placement that posted a negative return at 90 days post raise.

• NewPeak Metals Limited (ASX:NPN) saw a flat return of 0% at 90 days post raise, as the price of the company bounced between two price points for the entirety of the 90 days, likely due to a lack of liquidity.

• Caspin Resources Ltd (ASX:CPN) largely stayed negative throughout the 90 days before lifting to 0.06% at 90 days post raise.

Check out our Past Capital Raises page for more information on past transactions.