Floats nudge ahead in low-growth market

The International Monetary Fund cut its global growth forecasts for a second time this year on Tuesday. Investors searching for earnings growth in a low growth world might be well placed to start looking at IPOs. Matthew Smith highlights in his article in the AFR that many of the IPOs of 2014 and 2015 boast “high single-digit and in some cases double-digit earnings' growth with strong performing share prices to match. Low cost phone plan provider Amaysim, patent enforcer IPH, home wares and furnishings company Adairs, web project management company Axonex, farming company Costa Group – all made their respective ASX debuts in the past 12 months and all have share prices holding firm and performing well in the face of volatile markets. There have been a total 48 listings since the start of last year and the average share price return of this group has been 7.3 per cent, with the 12 IPOs that listed this year returning 19.1 per cent on average to the end of September, according to Deloitte.” AFR subscribers click the (VIEW LINK) to read more