A focus on quality: IPO market and private equity

A focus on quality: IPO market and private equity

While institutional investors are underweight given the lower volume of initial public offerings (IPOs) in the current environment compared to prior years – retail investors are desperate for yield in the face of low interest rates. That doesn't mean they are happy to buy just any IPO though.

Related content

Owl with orange eyes behind larch tree trunk

Australia's IPO market has weathered the current global volatility well. But buyers are being understandably selective in their choices. Uncertainty, driven by a number of key global events including the UK's Brexit, the upcoming United States election and Australia’s own federal election, are contributing to continued market volatility. It is not surprising then that institutional investors in particular are limiting themselves to well-run companies with strong track records led by seasoned management teams and well-credentialed boards.

This article, A focus on quality, explores how businesses that are complicated and difficult to understand don’t have a real place in the IPO market in the near term. It covers:

  • lessons learnt showing why investors will continue to look at floats on a case-by-case basis
  • the ‘ASIC effect’ suggesting changes to ramp-up the requirements for historical financial information in prospectuses
  • changes in the dynamics around pricing for floats where more companies are adopting a front-end approach.

The evolving deals landscape

We explore why organisations need to draw on deep industry knowledge to define strategy, unlock value, harness synergies and mitigate risk in a deal.

 
Read more

Deal Advisory

Deal Advisory

KPMG’s integrated team of specialists works at deal speed to help you find and drive value throughout your deal and transformation lifecycle.

Private Equity

Private Equity

KPMG offers a combined approach, helping our clients with strategic, deal and portfolio management issues.

Connect with us

 

Request for proposal

 

Submit

KPMG's new digital platform

KPMG's new digital platform