IPO Wrap: Potential Arm and Canva listings could jolt market as three stocks get set for ASX debut

Two medical screening companies and a gold producer are set to list on the ASX this month, as the global IPO scene begins to recover.

These stocks are ready to take flight. Picture: iStock

The global IPO market has been in the doldrums for a couple years now, but is on the verge of resurrection now - with a couple of potential big listings adding to the momentum.

SoftBank’s British chip design unit, Arm, plans to float its shares in an IPO on the Nasdaq in September, with a market cap expected to be north of $US60 billion.

According to the Nikkei, leading global chipmakers - including Apple, Samsung Electronics, Nvidia and Intel - will acquire Arm shares from Softbank as soon as the company is listed on the market.

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Headquartered in Cambridge, Arm is a critical player in the global semiconductor industry, and was previously courted by US chipmaker Nvidia.

Arm’s sales reached $US2.8 billion in FY22, as its power-sipping designs have given it a global market share of more than 90 per cent for smartphone chips.

In another potential IPO blockbuster this year, Aussie juggernaut Canva has given hints of a potential listing which could value it at $US40 billion.

The latest valuation further confirms Canva’s status as one of the fastest-growing software companies in history, having just started from zero in 2012.

Canva runs a freemium model where creators can use graphics designs for free initially, with an option to pay for a premium upgrade later on.

“A resurgence in global IPO activity is anticipated to start late 2023 as economic conditions and market sentiment gradually improve with the tight monetary policy entering its final stage,” said a report from EY.

On the ASX, there was just one IPO listing over the past month.

Storage King owner, Abacus Storage King (ASX:ASK), was listed last week at $1.41 but has since dropped to $1.26 on Friday.

Abacus is Australasia’s largest self storage company, with a huge network of storage locations across Australia and New Zealand. It also sells boxes and packing materials.

Meanwhile, the best performing IPO stock in 2023 has been Leeuwin Metals (ASX:LM1), with a gain of almost 50 per cent since debut.

Leewin explores critical metals vital for electric vehicles and renewable energy, and has projects located in Canada and Western Australia which are highly prospective for nickel, copper, PGEs and lithium.

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In July, the company announced that a rare earth elements (REE) anomaly had been identified from assays received from the 1000-soil sample program collected at the Gascoyne Li-REE Project in WA.

The second best performing IPO is Evergreen Lithium (ASX:EG1), which has climbed by 20 per cent since listing.

Evergreen’s flagship Bynoe lithium project is next to Core Lithium (ASX:CXO) and its producing Finniss mine in the Northern Territory.

In March, Evergreen’s chief technical adviser Jason Ward told Stockhead the company was more than just about being next door to a big deposit.

“The initial geochemistry found really big lithium anomalies and they appear to be right next to Core Lithium’s anomalies and contiguous with them,” he said.

“It’s not simply a nearology play, they’re contiguous geochemical samples to their mine.”

Dynamic Metals (ASX:DYM) meanwhile has risen by 10 per cent since listing.

Dynamic is the successful spin-off from Jindalee Resources (ASX:JRL), and is progressing exploration across its portfolio of projects in the critical minerals space in WA.

In an announcement on Monday, Dynamic said a program of work (POW) had been approved for high priority RC drilling at recently granted Democrat tenement, part of its flagship Widgiemooltha Project.

Drill rig and exploration crew are now set to mobilise to site by the end of August.

Upcoming ASX IPO listings

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

CLEO DIAGNOSTICS (ASX:COV)

Expected listing: August 17

IPO: $5 million at $0.20

Cleo is a medical diagnostics and devices development company.

The company’s product makes early diagnosis of ovarian cancer a reality with a simple and accurate blood test.

Its flagship is the CleoDX platform, a test kit designed to detect a novel protein biomarker CXCL10 in the blood which is present very early and through all stages of ovarian cancer.

After blood is collected, risk evaluation is performed and an assessment is made by Cleo’s proprietary algorithm.

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CURVEBEAM AI (ASX:CVB)

Expected listing: August 23

IPO: $25 million at $0.48

CurveBeam AI develops and manufactures a range of specialised medical imaging (CT) scanners and supporting clinical assessment software.

Based in Melbourne, the company is said to be a leader in cone beam CT imaging, paving new frontiers in artificial intelligence (AI)-based bone and joint analysis.

CurveBeam’s technology involves deep learning AI (DLAI) expertise, which it delivers across orthopaedics and bone health (fragility fracture prevention).

ASHBY MINING (ASX:AMG)

Expected listing: August 24

IPO: $15 million at $0.20

AMG is developing a gold production business in the Charters Towers region in Northern Queensland, and has secured rights to a land package covering over 600sq km containing historical mines, mineral resources, highly prospective exploration potential and a gold processing plant.

The 340Ktpa Blackjack Processing Plant is a conventional carbon in pulp (CIP) operation, located 15 minutes from Charters Towers.

The Far Fanning gold project lies on a permitted mining lease with historical production of 47,200oz gold from 664,000t of ore at average 2.2g/t gold.

This content first appeared on stockhead.com.au

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