HONG KONG/SYDNEY, Dec 9 (Reuters) – Bankers in Australia have much to cheer this Christmas as fees from underwriting IPOs surge 10-fold this year, and many are now betting on an equally active year in 2014 as a slew of private equity exits keep the market busy.
* Australia IPO deals set to rise six-fold to about $6 bln this year
* Fees for underwriting Australian IPOs up 10-fold this year
* Bankers predict busy IPO market next year, potential for bigger floats
* Vocation rises 10 percent on debut
In 2013, companies are expected to have raised about $6 billion through initial public offerings, a six-fold jump from last year and the highest since 2010, according to Thomson Reuters data.
On Monday, shares in education training provider Vocation Ltd opened up 10 percent on their A$1.89 offer price after the company raised A$253 million ($230.19 million) in its IPO. Vocation last traded at A$2.06, giving the company a market capitalisation of A$412 million.
The company’s upbeat open comes after a strong performance from peers Navitas Ltd and G8 Education Ltd said Evan Lucas, IG’s market strategist. Navitas’ shares are up 27 percent so far this year, while G8’s have risen 89 percent in the same period.
“It’s in the right area, it’s in the right industry, it’s certainly getting the attention that it requires, and that’s why you’ll probably see Vocation doing quite well today as well,” Lucas said.
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