Independent Market Reports (IMR) Key to Investors’ Confidence and a Successful Prospectus
Sydney, Australia, 31 January 2017 – Frost & Sullivan is expecting strong growth in the number of Initial Public Offerings (IPOs) on the Australian Stock Exchange (ASX) in 2017. Currently the number of proposed listings on the ASX for 2017 looks strong with close to 45 already in the pipeline, noted Frost & Sullivan.
“Frost & Sullivan has produced over 40 Independent Market Reports (IMR’s) for companies and their lead managers to include in their prospectuses for IPO’s on the ASX over the last 5 years” says Mr. Andre Clarke, Managing Director, ANZ at Frost & Sullivan.
He announced that Frost & Sullivan is also strengthening its IMR team in Australia to cater to the expected wave of IPOs this year. The team will be led by Ivan Fernandez, Industry Director, ANZ at Frost & Sullivan with continued support from Mark Dougan, who authored most of the 40+ IMR’s Frost & Sullivan has already produced.
“Ivan’s 15 years of experience at Frost & Sullivan in Australia working with many clients across a range of industries makes him the perfect person to lead this team. Ivan has a unique understanding of what market information is required in a prospectus to maximise funding for each IPO,” added Mr. Clarke.
Frost & Sullivan also noted that IPO listings in 2016 on the ASX continued unabated and finished the year on par with 2015 with information technology and financial technology (FinTech) listings representing almost 25% of the total IPO market. Frost & Sullivan Australia has contributed to a number of those listings in 2016.
An Independent Market Report (IMR) is typically a 10-15 page report detailing market size, forecasts, growth, market drivers & trends pertaining to the industry the company seeking to offer an IPO operates in. The IMR is typically inserted into the prospectus or can be used as a stand-alone document.
“Frost & Sullivan has produced a number of IMR’s as companies and their lead managers are becoming more aware of the importance of independent market analysis in an increasingly competitive and regulated Australian IPO market” says Mr. Clarke.
“Potential investors are looking to understand the growth drivers in an investee’s business, and seek confirmation and assurance that the investee is operating in an attractive and growing market” he added.
A recent article in the Sydney Morning Herald highlighted the fact that as a result of a number of poor performing IPO’s over the last couple of years, investors are becoming more wary of buying newly listed shares. The article highlighted the “information gap between buyer and seller when a company comes to market.” Frost & Sullivan anticipates that this information gap coupled with more cautious investors, will emphasise the need for prospectuses to include more accurate, up to date market data.
Frost & Sullivan has successfully supported more than a 100 IPO’s on the SGX, Bursa Malaysia, Hong Kong Exchange and AIM in the UK over the last few years. However, in Australia specifically, Frost & Sullivan has successfully supported over 40 IPO’s on the ASX including; Murray River Organic, iCar Asia, Aconex, Crowd Mobile, 8Common, iBuy Asia, Spotless, Frontier Digital Ventures, Next DC, 1st Available, WiseTech, OneAll International, Rewardle, Silver Heritage, CarSales, Real Estate Investar, TopBetta, Megastar Millionaire, Mitula, Faster Enterprises, Droneshield Limited, Majestic Horizon, Volpara Solutions
For queries and more information about how Frost & Sullivan can assist with your Initial Public Offering on the ASX, please send an e-mail with your contact details to David Hymers, Frost & Sullivan Australia, at [email protected]
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