The number of initial public offerings (IPOs) in the pipeline in Australia at present is almost without precedent. Between now and Christmas, the ASX can expect to see up to 19 new listings! Most prominent among these new listings will be the free to air television network Nine Entertainment Network and retailer Dick Smith Electronics. Additional ones include internet company Freelancer, education provider Vocation, transport provider McAleese Transport and logistics company BIS Industries.

This level of activity is interesting on two fronts.

Firstly, it confirms emphatically the significant improvement in market sentiment as well as confidence that we are seeing in Australia. Milford has formed a strong view on the improving conditions in Australia. This is on the back of our frequent visits over the ditch, which saw us make more than 400 Australian company contacts in the last year alone. Along with the recent strength in housing, this IPO pipeline goes a long way to affirming this view.

Secondly, the type of companies coming to market highlights the attractiveness of Australia as a place to invest. The Australian market holds a strong depth and diversity of investment opportunities, across different industries, sectors and market capitalisations. If you are interested in Financials, Resources and most things in between, the ASX has got you covered. 

Given these factors, Milford continues to see very good opportunities to invest in the Australian market.

Marc Whittaker

Portfolio Manager