Shot at top stocks for cashed up Aussies

A SURGE in sharemarket floats is giving Australians the chance to buy into businesses that were previously only available to a wealthy few.

Almost 100 new stocks debuted on the Australian Securities Exchange between January and July, including Airtasker and Best & Less, while initial public offerings (IPOS) for food company Guzman y Gomez and online wine business Vinomofo look likely soon.

Almost 30 companies are scheduled to list on the ASX in September alone. Others are listing in the US but can still be bought via share trading platforms.

Shaw & Partners senior client adviser Jed Richards said he screened IPOS, because many today aimed to make money for their private equity vendors rather than everyday investors and found only about 10 per cent were worth sharing with his clients.

An IPO was riskier than buying shares that were

already on the market because “you don’t know what it’s worth”, Mr Richards said.

“You don’t have a live share price, and the market will ultimately set its valuation.”

Onmarket managing director Nick Motteram said there could be 150 IPOS this year “which is definitely above the average”.

“People aren’t getting much of a return on interest or bonds, and there’s a lot of cash out there,” he said.

Mr Motteram said many investors missed out on buying into an initial IPO because they weren’t clients of the stockbrokers involved but waiting until after a stock listed could be beneficial.

“Then there’s more understanding of the general market sentiment towards it,” he said.

Notable companies recently listed or planning to float include discount department store Best & Less, fitness giant F45 Training, gig economy company Airtasker and doughnut giant Krispy Kreme, with Foxtel also a possibility.