Company floats explained

Download 2024 floats files

Download 2003 to 2024 floats files

A company floats when it lists on the stock exchange and sells its shares to the public by way of a prospectus.

What is a prospectus?

Listing or “going public” means the company has to comply with the stock exchange’s listing rules when it floats and issue a prospectus. The prospectus is an invitation to the public to buy shares in the company and thus raise money for working capital or acquisitions. It explains in some detail what the company intends to do with the money it raises.

Floating a company on a stock exchange is costly and complex and many companies avoid it to some extent by merging with an existing entity that has failed. They thus gain “back door entry” to the exchange.

Should I invest in a new float?

Not so long ago a specialist website service monitored new company floats over a number of years and concluded investors would be better off avoiding new floats. We agree unless you are an experienced investor. Pacific Brands, Boart Longyear and Repco are examples of companies that were leveraged up and listed at high multiples, before subsequently collapsing.

Getting advice?

The “average” investor should be wary of investing in start up and small companies. Stock exchanges serve as a nursery for small companies, some of which prosper and grow, while many others fall by the wayside. If you are contemplating investing in a new company, we recommend you research it thoroughly first and obtain investment advice from a broker.

Downloading details of floats?

We have been following the outcomes of floats on ASX since 2003. Details are available in Excel files to members and prepaid members.  These files provide the following data for each company:   

  Float date

  Company

  ASX Code

  Float day opening price

  Float day closing price

  Date of first name change

  Events subsequent to float (to 2014)

  Status early January 2017

  Current ASX Code

(Note: all files are for the calendar year and were last updated early January 2020)

Please click on the appropriate link below: