So it seems that given the transition to the Abbott Government in Australia, IB revenue will likely spike as companies are looking to list on the Australian exchange. Anybody familiar with which sectors these companies are in? Is this tied to the mining industry which Abbott opposed introducing mining profits tax to?
Trending Content
| +81 | GF doesn’t care about her looks | 49 | 14h | |
| +55 | Affair with my Associate… In Desperate Need for Advice | 23 | 6h | |
| +41 | How to sound more eloquent? | 16 | 2h | |
| +39 | Insurance as High Finance? | 10 | 2d | |
| +38 | 400k/year in HVAC sales? | 26 | 1d | |
| +33 | Would you rather live alone in an outer borough or with roommates in Manhattan? | 23 | 2d | |
| +27 | Why do people listen to Jim Cramer Investing Advice? | 10 | 9h | |
| +26 | Is my boss gaslighting me? | 3 | 8h | |
| +25 | Carnivore Diet | 9 | 10h | |
| +25 | WSO Ranking On Resume??? | 6 | 6h |
Career Resources
Uhh why do you think that the change of a political leader is going to lead to a giant flow of IPO's?
The days when a few geologists and engineers could ban together and IPO an 'exploration company' is long-gone, the market is already saturated with those.
The VC industry in Australia has a particular emphasis on Biotech, so if there's any increase in activity it would be associated with those.
Ultimately though your premise is weak, change in moderate left (which was handing out money to corps) to moderate right (which is culling things like the CEFC) = more IPOS?
IPO's are associated with booms in the economic system, Australia has not been enjoying a 20% rally like the US, instead it's had industries largely flat with mining being hammered.
Basically what Setarcos said. The change to the Abbott government doesn't really have too much of an overall impact. I'm sure companies directly affected by certain policy may have held-off issuing when an election was pending, but aside from that the difference is not enough to spur a wave of IPO's by any means.
In regards to mining, the verdict down here is that mining's boom days will begin to wind down within the next few years if it hasn't already. The only strong industry in Australia at the moment is the finance sector with most (all?) of the big 4 banks posting big results recently. Aside from that, and some recent housing growth, the economy is pretty flat.
I can't access AFR's articles but here is something from the Australian which does support OP's premise at least: http://www.theaustralian.com.au/business/markets/whatever-floats-your-b…
Again not to be too negative (even the article pointed out acknowledges this), PE led IPO's (as opposed to companies seeking to list) are looked at very skeptically within the Australian markets (if you look at the data, the 'Virtus' example is actually one of the only floats that has produced a positive return - there have been some massive stuff ups).
My overall picture of the environment is that there's no fundamental driver for these floats - PE funds 'have' to exit eventually, as the funds have a fixed life. Yes I'll admit there's evidence that Funds can 'time' IPO's better than the base case, I still wouldn't say there'll be a flurry of them though. I would wager a lot of this is influenced by the euphoric markets the US are experiencing and Australian PE firms thinking 'why not us as well', whilst LP's are wanting their money back. If you look at the broader picture, the AUD is still too strong to assist exports, mining export demand has started to soften, and there's too much economic chaos in the rest of the world (AKA look at the US, what a circus, or perhaps EUR?)
Finally I'm just going to put it out there, where's the demand for these IPOs coming from? Why would I buy Channel Nine's IPO when I could invest in an Oligopoly of a banking system? If I wanted a 'good' return I'd just go into the US market and enjoy that rally, or sit in AUD Fixed Income and enjoy carry as the AUD continues to rally against the rest of the world.
I wasn't trying to argue one way or the other, but just trying to piece together some stuff I've read and gain a little better understanding of the environment. Really appreciate the feedback and insights, thanks!
Source for finding completed M&A deals in Australia (Originally Posted: 02/12/2016)
Hi guys, this is probably quite a basic question but what would be the best way to source deals from last year? This is without access to any databases. I'm trying to find Citi's 5 biggest M&A deals from last year without much success. The only source I have is the Australian Financial Review (WSJ equivalent), and it's throwing up a 1000 hits if I search for Citi.
Cheers
Try mergermarket.com. Their league table reports are often free (although league tables won't tell you what the individual deals were).
Find this kid.
Having met him, I can confirm he is a wanker.
Et officiis in quia iusto ad eos. Totam amet unde natus.
Pariatur pariatur natus et ut quibusdam ipsam iusto. Adipisci est qui veniam rerum consequuntur tempora. Quo cumque amet eligendi eos sit officia ut. Dicta delectus ea et omnis voluptatem veniam. Labore rerum veniam recusandae est est.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...