April was a quiet month, but capital markets have recovered strongly

The month of April saw $ 3.1 billion raised in capital via the ASX, down 69% on the same month in 2021.

Only $ 386 million was raised via primary markets, down a whopping 90% on the prior year, and capital raised via secondary markets was down 54% year-on-year to $ 2.7 billion.

Capital booming in FY22

But though it was a quiet month, the 2022 financial year has been one of recovery for capital markets.

With just two months remaining before we jump into the 2023 financial year, $ 219.6 billion has been raised, up 180% compared to the same time in 2021.

A whopping $ 172.5 billion has been raised via secondary markets, up 212%, and $ 47.1 billion via primary markets, up 102%.

New admissions

Though capital was harder to come by in April, new listed entities were not; 18 hit the boards last month, bringing the total to 2,311, a 5% increase on this time last year.

International Graphite Ltd (ASX: IG6) was one such company, raising $ 10 million in its initial public offering (IPO) at 20 cents per share, as it acquired the Springdale Graphite Project in southern Western Australia.

International Graphite plans to provide a new source of battery graphite to the global electric vehicle (EV) and renewable energy markets.

It’s designed an integrated mine-to-market operation in Western Australia that will take mine concentrate from its newly acquired Springdale asset and create battery anode materials at a downstream processing facility in Collie.

Busy March quarter

April saw the average daily number of trades jump by 19% on the prior year, with an average daily value traded on the market of $ 6.1 billion – up 22%.

The total cash market for April was $ 128.3 billion, up 10%, and the total cash market for FY22 thus far has risen 15% to $ 1.6 trillion.

This interest was reflected in activity sheets from a busy March quarter, which saw companies across the spectrum make significant progress.

From maiden mineral resource estimates to project acquisitions, the ASX’s gold stocks had a productive March quarter.

The oil and gas market remained buoyant amid continued global energy concerns, with exploration programs galore to be found in ASX stocks.

Meanwhile, in the tech sector, strong newsflow ensured ASX-listed tech stocks beat the relatively fallow trends following the industry as a whole.

– Daniel Paproth