IPO Wrap: 2024 outlook for IPOs, and which stocks could list on ASX before year-end

The global IPO market landscape shifted in 2023, with volumes falling by 8% and proceeds down by 33% compared with 2022, according to a report from E&Y.

Source: EY

Despite the strong equity market rally this year (S&P 500 up 24% and ASX200 up 7%), IPOs have remained muted in many developed markets.

The exception was the month of September, when a flurry of top names such as ARM Holdings, Instacart, and Klaviyo went public.

E&Y believes that in 2024, enthusiasm for IPOs will be high, and smaller deals will emerge as market sentiment improves.

The consulting company, however, adds that potential candidates should monitor the macro situation carefully.

“Before monetary policy eases and geopolitical climate stabilises, IPO candidates should keep their eyes on building fundamentals and managing price expectations to capitalise on the fleeting windows as 2024 progresses,” said E&Y.

Globally, E&Y believes moderating inflation and potential 2024 interest rate cuts could attract investors back to IPOs.

“However, sustained geopolitical instability may undermine confidence. Broadly, the year ahead hinges on an improving macroeconomic backdrop for IPO revival, as companies eagerly await more favourable market conditions to widen IPO windows.”

IPO candidates looking to go public in 2024 will also need to be well-prepared.

“Key factors to consider are: inflation and interest rates, government policies and regulations, recovery of economic activities, geopolitical tensions and conflicts, ESG agenda, and global supply chain,” said E&Y.

Here’s how the 2023 ASX IPOs are performing

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Code Name IPO Price Current Price Return Market cap Listing date GHY Gold Hydrogen 0.5 0.955 91% $73,213,187 13/1/2023 GDM Great Divide Mining 0.2 0.300 50% $8,175,000 18/10/2023 JBY James Bay Minerals 0.2 0.285 43% $9,246,825 12/9/2023 CC9 Chariot Corp 0.45 0.590 31% $43,265,625 30/10/2023 GR8 Great Dirt Resources 0.2 0.220 10% $6,190,527 10/11/2023 TOK Tolu Minerals 0.5 0.500 0% $29,380,422 10/11/2023 NDO Nido Education 1 0.980 -2% $216,660,943 16/10/2023 PLN Pioneer Lithium 0.2 0.190 -5% $5,400,750 28/9/2023 RDX Redox 2.55 2.390 -6% $1,254,944,613 3/7/2023 HTM High-Tech Metals 0.2 0.175 -13% $4,331,510 23/1/2023 CHW Chilwaminerals 0.2 0.170 -15% $7,798,750 5/7/2023 COV Cleo Diagnostics 0.2 0.170 -15% $12,597,000 22/8/2023 ASK Abacus Storage King 1.41 1.130 -20% $1,484,936,347 1/8/2023 FCG Freedom Care Group 0.2 0.155 -23% $3,702,006 30/11/2023 NVO Novo Resources Corp 0.2 0.150 -25% $6,740,720 11/9/2023 EG1 Evergreen Lithium 0.25 0.185 -26% $10,402,550 11/4/2023 DYM Dynamic Metals 0.2 0.140 -30% $4,900,000 16/1/2023 ILT Iltani Resources 0.2 0.140 -30% $4,761,471 30/6/2023 CVB Curvebeam Ai 0.48 0.335 -30% $67,919,814 23/8/2023 NGX NGX 0.2 0.135 -33% $12,232,598 16/6/2023 CGR CGN Resources 0.25 0.165 -34% $14,978,402 18/10/2023 ACM Aus Critical Mineral 0.2 0.120 -40% $3,849,150 3/7/2023 SQX SQX Resources 0.2 0.115 -43% $2,875,000 20/2/2023 AUG Augustus Minerals 0.2 0.115 -43% $9,673,800 25/5/2023 PL3 Patagonia Lithium 0.2 0.110 -45% $5,404,135 31/3/2023 LM1 Leeuwin Metals 0.25 0.135 -46% $6,212,110 29/3/2023 VHM VHM 1.35 0.700 -48% $107,741,288 9/1/2023 DY6 Dy6 Metals 0.2 0.100 -50% $3,856,249 29/6/2023 ADC Acdc Metals 0.2 0.068 -66% $3,204,330 17/1/2023 ACE Acusensus 4 0.780 -81% $98,591,981 12/1/2023

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*Note: there was a 5:1 stock split for ACE

There were no IPO listings in the past couple of weeks.

The best IPO this year however was Gold Hydrogen (ASX:GHY), with a return of over 90%.

The stock has been rising since early November after the company announced that significant concentrations of hydrogen and helium were encountered in sections of the Ramsay 1 well, demonstrating an active hydrogen system in the Ramsay Project area.

In early December, Gold Hydrogen reported that Ramsay 2 well exploration has been completed, and that high helium concentrations were found, reaching up to 6.8% in raw gas from the Kulpara Formation.

Despite being only the second well in the company’s exploration program, multiple data points throughout the drilling campaign indicate the potential for a significant helium reservoir and a prolific helium system at the Ramsay project site.

Subsequent exploration, analysis and future flow testing will provide a clearer picture of this promising opportunity, the company said.

US-based lithium explorer Chariot Corp (ASX:CC9) has also been rising since announcing in early November that a drill rig has arrived at its flagship Black Mountain Project in Wyoming, US, ready for drilling.

Drilling operations are ongoing, with the first round of assay results expected in January 2024.

The Phase 1 drill program was designed to test the central portion of the Black Mountain pegmatite dike swarm, comprising a 1,000m long by +100m wide zone of LCT pegmatite sub-crop and outcrop.

Upcoming ASX IPO listings

All dates are sourced from the ASX website. They could change without notice.

Enlitic Inc (ASX:ENL)

Expected listing: December 19
IPO: $35m at $0.83 a share

Enlitic is a healthcare IT company that harnesses AI to manage medical imaging data in radiology, such as MRI, CT, X-ray and ultrasound images.

The Enlitic platform standardises, protects, and analyses data to create a database that improves clinical workflows, increases efficiencies, and expands capacity.

The company says it owns the industry’s first localised real-world medical imaging database that unlocks the value of historical diagnostic images, aligned with real-time diagnostics, and linkage to real-world data across any critical care solutions.

Health care providers using the Enlitic platform would have their productivity increased, and have their costs decreased, says the company.

Brazilian Rare Earths (ASX:BRE)

Expected listing: December 21
IPO: $50m at $1.47 a share

Brazilian Rare Earths owns and operates a district scale Tier 1 Rare Earths Province, located in the the state of Bahia, North Eastern Brazil.

The company believes its resource – comparable to the world’s biggest non-Chinese rare earth clay project at Serra Verde – will potentially translate into multibillion-tonnes.

The flagship 510Mt Rocha de Rocha rare earths project represents one of the most exciting critical minerals discoveries globally. Grades of over 40% TREO have been found, with mineralisation at or near surface.

The project is also accessible by sealed roads, has access to clean hydropower via existing high-voltage power lines, and is located <200km from a major deep-water port.

Arcadium Lithium (ASX:LTM)

Expected listing: December 22
IPO: Non-IPO. Merger between Allkem and Livent

In May, lithium giant Allkem (ASX:AKE) and US-based Livent announced an agreement to combine in an all-stock merger of equals to create a global integrated lithium chemicals producer.

The merger has won support from Livent’s big US pension fund shareholder and Allkem’s shareholders.

The merged company will be re-badged as Arcadium Lithium, and run by Livent CEO Paul Graves.

The company will also be 56-44 split between the holders of Allkem and Livent, with plans to become the world’s third largest lithium producer by 2028 behind Albemarle and SQM.

Its global portfolio, which will include Mt Cattlin, the Olaroz, El Fenix, Sal de Vida and Cauchari brines in Argentina, James Bay and Whabouchi hard rock mines in Quebec and Naraha lithium hydroxide plant in Japan, will eventually produce 248,000t of lithium carbonate equivalent tonnes a year.

Read more about LTM here: Allkem flags growth over dividends ahead of Livent merger

Kali Metals (ASX:KM1)

Expected listing: January 4 2024
IPO: $15m at $0.25 a share

Kali Metals was established from the spinout of a portfolio of lithium assets owned by ASX-listed Kalamazoo Resources (ASX:KZR), with assets in the Lachlan Fold Belt.

The Lachlan Fold Belt is best known for its copper, gold and silver production.

But it has also become a focus of lithium explorers, with juniors hoping to repeat the success of their west coast counterparts in WA.

Two of those projects have been sitting in the portfolio of Kalamazoo – the Jingellic and Tallangatta.

Both have now been turned into a new company called Kali Metals, along with KZR’s DOM’s Hill and Marble Bar projects in the Pilbara and the lithium rights at Karora Resources’ Higginsville tenement package in WA.

KZR will own 55% of the entity, which will see Graeme Sloan as MD and Luke Reinehr as chairman.

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