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Investment bankers expect rush of IPOs

Aust equity capital markets on pace for strong year as floats loom.
By · 14 Aug 2013
By ·
14 Aug 2013
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Senior investment bankers expect a busy end to 2013 for floats, with a rush of initial public offerings (IPO) expected before Christmas, according to The Australian Financial Review.

A number of potential floats had been put on hold as firms waited for stronger market conditions. However, the recent success of IPOs for insurance broker Steadfast and fertility clinic operator Virtus Health has sparked talk that other firms may move their IPO timelines up.

“We're certainly telling issuers that the window is open – earnings feel OK and Australian equities are fairly valued,” UBS equity capital markets boss Simon Cox told the AFR.

SingTel-Optus's satellite division is among the most closely-watched potential floats, valued at about $2 billion.

SingTel is reportedly mulling taking the division public after failing to find bidders who could meet the reserve price.

However, even without the SingTel-Optus float more than $3 billion in potential floats could hit the market by year-end, or shortly after, the AFR added.

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