June 23, 2025 • 6 mins
With Virgin Australia listing on the ASX today, how have recent IPOs performed after listing?
Join Sean Aylmer & Michael Thompson as they answer questions on business, investing, economics, politics and more.
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Episode Transcript
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Speaker 1 (00:03):
Welcome to Ask Fear and Greed, where we answer questions
about business, investing, economics, politics and more. I'm Michael Thompson
and hello Sean Aylmer Hllio Michael now Seawan. Today, virgin
Australia is listing on the asx SO. Today's question is
all about IPOs and when you take your look back
at some of the recent IPOs, what have they done
(00:25):
once listed?
Speaker 2 (00:27):
Very good question. I suppose the first point to make
is that we actually haven't had that many listings. In fact,
most of our listings have been tiny, raising very small amounts.
I suppose Guzmany Gomez was the last big one.
Speaker 1 (00:41):
Certainly the most exciting one, wasn't it. Yeah got the
most attention.
Speaker 2 (00:45):
Yeah. Two point two billion dollars at the time it actually,
I mean so it listed in the middle of last year,
about two months ago or thereabouts. What was interesting with
that one is it just took off. So it listed
about thirty bucks, it got to about it was to
forty four dollars at one point kind of late last year.
So when it came to the market, many people said, no,
(01:07):
we're comparing this to Domino's. Dominos isn't doing very well,
so Goozman won't do so well. Came on at thirty bucks,
got to almost forty five forty six or forty four
forty five bucks, people thought, wow, that's great. Do you
know where it is now by twenty eight dollars seventy two?
Speaker 1 (01:22):
Oh really?
Speaker 2 (01:23):
Yeah, it's actually back below the listing price, so it's
lower than where it started. Notwithstanding it went for that
huge run in the or sort of the second half
of last year, the first six months of its life.
Speaker 1 (01:39):
So and what I know, there was a lot of excitement,
general excitement around it, and there was a lot of
talk from the company itself about they had a massive
plan ahead for expansion, rolling out a lot more restaurants
and things. Just got a bit of momentum up behind
it that just keeps pushing it after listing.
Speaker 2 (01:59):
Yeah, I mean, reality bites at some point. And so
Goodman had plenty of big plans, particularly in the US,
want to drill out into the US. Now they've just
been sort of tempered some of those plans a bit.
The economy isn't going as well, and so you just
at the end of the day and investor looks at
what earnings are going to be like in the future,
and whilst it might all be exciting when it leasts,
(02:20):
if they're not going to meet some of those earnings hopes,
then the share price settles down. And that's exactly what's
happened there. It's not the only stock to have listed
so late last year. There was something called Southern Cross
Gold that listed three can I three? Yeah?
Speaker 1 (02:35):
Can I guess what they do?
Speaker 2 (02:38):
You can even guess what the share price is. So
it listed at three dollars it's now seven buck sixty eight.
Oh really, yeah, so it's pretty good. I mean up
on Golden Horse Mineral's great name. No price is guessing
with that one is that's up sixty six percent as
well Coscoal, which was the payments group that listed, So
(03:00):
that was two fifties now about two ninety or thereabouts.
So generally they've gone up with the market. The big
exception so there's a crowd called dig you Co Infrastructure
Reach Real State Investment Trust that had a lot of
sort of data center style properties in it. It listed
(03:23):
at five bucks, it's now three dollars sixty so that
had a lot of data centers in it. Now we
talk a lot about data centers. We get very excited
about them. But in actual fact, the value of data
centers has dropped quite substantially since late last year, in
part because did you Co Infrastructure hit the market and
(03:45):
really highly priced and then it's come right off. Goodman
Group did the same thing. They came off quite a bit,
and it's on the back of the fact that there's
just a little bit of trepidation about data centers at
the moment. We had deep coming out of China, So
do we need these big data centers that we thought
we might need. That was a big one. Also, I
(04:07):
think the market felt that the data center owners just
took them for a bit of a ride late last year,
including the floating of Digito infrastructure, so they've really been
on the nose. So in that instance, that stocks down
twenty five to thirty percent since listing. Look at Goozmany
Gomez over the last two months, it's basically flat. The
gold miners have done really well. So the upshot to
(04:29):
this is it very much depends on where they're listing
and the sector they're in.
Speaker 1 (04:35):
Yeah, and of course we've talked before about Virgin Australia
trying to kind of figure out the right timing. Yeah,
two lists, and when there was a lot of talk
about it a couple of weeks ago, when oil prices
were down and it was really looking like it was
going to be a great time for Virgin. Then all
of a sudden we had everything that happened in the
(04:55):
Middle East and Quantas kind of bringing back a lot
of capacity back in to the market here by closing
down Jetstar Asia, and suddenly it wasn't quite as good
as it was looking. So, I mean, it would been
a very difficult thing to try and work the timing.
In the end, you just have to go with it
and just ride the market and see where it takes you.
Speaker 2 (05:13):
That's exactly right. I mean, Virgin twelve hours ago is
looking worse than it is right now. In this Donald
Trump world where we've just had a ceasefire and a
parent ceasefire between Iran and Israel, that should help vergiin
Australia enormously when it lists. I mean as we're speaking,
it was listing about at twelve o'clock today, so about
thirty minutes away from when we're speaking. That should do
(05:37):
much better than it would have if it listed yesterday,
purely on the back of what's happened in the last
twenty four hours. Pretty crazy world at the moment.
Speaker 1 (05:45):
Yeah, extraordinary. All right, that was a pretty comprehensive look
overall at the IPO space. I think we've I think
we've done well, Sean.
Speaker 2 (05:54):
We've done our job. I think so we haven't the right.
Speaker 1 (05:56):
If you've got your own question, then please send it
on through via the website fearangreed dot com today you
or any of the social media platforms sent it through
and we'll pop it on the list. Thanks very much, Sean.
Speaker 2 (06:05):
Thanks Michael.
Speaker 1 (06:06):
I'm Michael Thompson and this is us Fear and Greed.
Welcome to Ask Fear and Greed, where we answer questions
about business, investing, economics, politics and more. I'm Michael Thompson
and hello Sean Aylmer Hllio Michael now Seawan. Today, virgin
Australia is listing on the asx SO. Today's question is
all about IPOs and when you take your look back
at some of the recent IPOs, what have they done
(00:25):
once listed?
Speaker 2 (00:27):
Very good question. I suppose the first point to make
is that we actually haven't had that many listings. In fact,
most of our listings have been tiny, raising very small amounts.
I suppose Guzmany Gomez was the last big one.
Speaker 1 (00:41):
Certainly the most exciting one, wasn't it. Yeah got the
most attention.
Speaker 2 (00:45):
Yeah. Two point two billion dollars at the time it actually,
I mean so it listed in the middle of last year,
about two months ago or thereabouts. What was interesting with
that one is it just took off. So it listed
about thirty bucks, it got to about it was to
forty four dollars at one point kind of late last year.
So when it came to the market, many people said, no,
(01:07):
we're comparing this to Domino's. Dominos isn't doing very well,
so Goozman won't do so well. Came on at thirty bucks,
got to almost forty five forty six or forty four
forty five bucks, people thought, wow, that's great. Do you
know where it is now by twenty eight dollars seventy two?
Speaker 1 (01:22):
Oh really?
Speaker 2 (01:23):
Yeah, it's actually back below the listing price, so it's
lower than where it started. Notwithstanding it went for that
huge run in the or sort of the second half
of last year, the first six months of its life.
Speaker 1 (01:39):
So and what I know, there was a lot of excitement,
general excitement around it, and there was a lot of
talk from the company itself about they had a massive
plan ahead for expansion, rolling out a lot more restaurants
and things. Just got a bit of momentum up behind
it that just keeps pushing it after listing.
Speaker 2 (01:59):
Yeah, I mean, reality bites at some point. And so
Goodman had plenty of big plans, particularly in the US,
want to drill out into the US. Now they've just
been sort of tempered some of those plans a bit.
The economy isn't going as well, and so you just
at the end of the day and investor looks at
what earnings are going to be like in the future,
and whilst it might all be exciting when it leasts,
(02:20):
if they're not going to meet some of those earnings hopes,
then the share price settles down. And that's exactly what's
happened there. It's not the only stock to have listed
so late last year. There was something called Southern Cross
Gold that listed three can I three? Yeah?
Speaker 1 (02:35):
Can I guess what they do?
Speaker 2 (02:38):
You can even guess what the share price is. So
it listed at three dollars it's now seven buck sixty eight.
Oh really, yeah, so it's pretty good. I mean up
on Golden Horse Mineral's great name. No price is guessing
with that one is that's up sixty six percent as
well Coscoal, which was the payments group that listed, So
(03:00):
that was two fifties now about two ninety or thereabouts.
So generally they've gone up with the market. The big
exception so there's a crowd called dig you Co Infrastructure
Reach Real State Investment Trust that had a lot of
sort of data center style properties in it. It listed
(03:23):
at five bucks, it's now three dollars sixty so that
had a lot of data centers in it. Now we
talk a lot about data centers. We get very excited
about them. But in actual fact, the value of data
centers has dropped quite substantially since late last year, in
part because did you Co Infrastructure hit the market and
(03:45):
really highly priced and then it's come right off. Goodman
Group did the same thing. They came off quite a bit,
and it's on the back of the fact that there's
just a little bit of trepidation about data centers at
the moment. We had deep coming out of China, So
do we need these big data centers that we thought
we might need. That was a big one. Also, I
(04:07):
think the market felt that the data center owners just
took them for a bit of a ride late last year,
including the floating of Digito infrastructure, so they've really been
on the nose. So in that instance, that stocks down
twenty five to thirty percent since listing. Look at Goozmany
Gomez over the last two months, it's basically flat. The
gold miners have done really well. So the upshot to
(04:29):
this is it very much depends on where they're listing
and the sector they're in.
Speaker 1 (04:35):
Yeah, and of course we've talked before about Virgin Australia
trying to kind of figure out the right timing. Yeah,
two lists, and when there was a lot of talk
about it a couple of weeks ago, when oil prices
were down and it was really looking like it was
going to be a great time for Virgin. Then all
of a sudden we had everything that happened in the
(04:55):
Middle East and Quantas kind of bringing back a lot
of capacity back in to the market here by closing
down Jetstar Asia, and suddenly it wasn't quite as good
as it was looking. So, I mean, it would been
a very difficult thing to try and work the timing.
In the end, you just have to go with it
and just ride the market and see where it takes you.
Speaker 2 (05:13):
That's exactly right. I mean, Virgin twelve hours ago is
looking worse than it is right now. In this Donald
Trump world where we've just had a ceasefire and a
parent ceasefire between Iran and Israel, that should help vergiin
Australia enormously when it lists. I mean as we're speaking,
it was listing about at twelve o'clock today, so about
thirty minutes away from when we're speaking. That should do
(05:37):
much better than it would have if it listed yesterday,
purely on the back of what's happened in the last
twenty four hours. Pretty crazy world at the moment.
Speaker 1 (05:45):
Yeah, extraordinary. All right, that was a pretty comprehensive look
overall at the IPO space. I think we've I think
we've done well, Sean.
Speaker 2 (05:54):
We've done our job. I think so we haven't the right.
Speaker 1 (05:56):
If you've got your own question, then please send it
on through via the website fearangreed dot com today you
or any of the social media platforms sent it through
and we'll pop it on the list. Thanks very much, Sean.
Speaker 2 (06:05):
Thanks Michael.
Speaker 1 (06:06):
I'm Michael Thompson and this is us Fear and Greed.
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