Floats where investors lost more than $200 million

ABC Learning, (7 years, 2001-2008): the childcare centre giant claimed to have net assets of $2.23 billion in February 2008 but subsequently collapsed. Its market cap peaked at more than $2 billion in 2007 after it initially raised $8 million in a 2001 float priced at $2. The real damage came from a succession of secondary equity raisings, the most notorious of which was to the Singapore Government which ended up dropping $400 million when it collapsed with founder Eddie Groves blaming short sellers.

APM Human Services (APM): listed in late 2021 after raising $982 million from public investors at $3.55 a share. There have been very few major floats since. Investors dropped more than $500 million and the private equity firm which floated the business, Madison Dearborn, ended up buying it back in 2024 with a firm offer at $1.40 a share.

Ausenco, (10 years, 2006-2016): the Brisbane-based resource engineering firm once chaired by former Queensland Premier Wayne Goss had a market cap above $1 billion when its shares peaked at $15, but it disappeared in a whimper in 2016, when private equity fund Resource Capital paid just 40c a share or $154 million in an agreed bid. It was floated at $1 a share in 2006 when it initially raised $26 million and then did a number of capital raisings at higher prices along the way.

Babcock & Brown, 2009: collapsed in March 2009 but its last audited accounts were released in August 2008 and showed a $150 million half year profit and net assets of $2.63 billion. Market cap peaked at more than $5 billion.

Babcock & Brown Capital (BCM)/Eircom(ERC): floated in 2005 when it raised $1 billion from investors. Changed its name to Eircom Holdings in 2009, which was taken over by Emerald Communications later that year in a deal which valued the equity at 54.5c, valuing the cash-scrip offer at just $91m. However they had paid $1.40 per share or $235m in capital returns earlier in 2009 after selling its Golden Pages investment. The main asset was a majority stake in Eircom, Ireland's Telstra equivalent, but it was loaded with debt. The final balance sheet showed $1.5 billion in accumulated losses and negative equity of $660m, so investors dropped around $800m overall.

Babcock & Brown Power, (10 years, 2006-2016): floated at $2.50 a share in 2006 and briefly enjoyed a market capitalisation above $1 billion before the GFC struck and it grossly overpaid for some of the Alinta assets. Restructured and changed its name to Alinta Energy in 2009 and then restructured again in 2011 changing its name to Redbank Energy before finally delisting in 2016 with accumulate losses of around $1.6 billion.

Babcock & Brown Wind (BBW): The company issued 258 million stapled securities at $1.40 each in October 2005 to raise about $396 million, including $35 million in oversubscriptions. Later changed its name to Infigen Energy which was taken over by a Spanish firm in 2020 which offered 92c per share.

BBI/Prime Infrastructure, (8 years, 2002-2010): initially floated by Babcock & Brown as Prime Infrastructure Trust in 2002 after issuing 284m shares at $1 each, albeit with a deferred second payment. Late became Babcock & Brown Infrastructure and went on a wild debt-funded acquisition binge leading into the GFC. Canadian firm Brookfield Asset Management took the old Babcock & Brown Infrastructure over in 2010 in what was billed as a $2.8 billion merger at the time. The Dalrymple Bay port assets were later refloated.

Becton Property Group (BEC): floated in July 2005 (see prospectus) with Rich Lister founder and executive chair Max Beck retaining a controlling 51% stake (see 2005 annual report). The float price was 50c and it initially had 362 million shares although this expanded with subsequent capital raisings. Did a Macquarie advised stapling restructure in 2006, which raised another $173 million at $2.55. Raised a further $68m in a placement at $4.25 in September 2007, which was not accompanied by an SPP for retail investors. Mack Beck retired as chair in April 2008. It limped through the GFC and then did a capital restructure with its listed notes in June 2011 and then collapsed in 2013 with the final balance sheet as of June 30, 2012, showing it had accumulated losses of $430 million and negative equity of $15.3m.

Boart Longyear, (18 years, 2007-2024): flipped and floated by Macquarie in 2007 when it took $2.35 billion from investors but still left a business loaded with $US642 million in debt. Was a disaster from the start after the GFC hit and ended up costing investors and lenders more than $5 billion before it was privatised by US private equity firm American Industrial Partners in a deal that valued the company at $543 million. See AFR report and takeover announcement.

Brisconnections: declared a $142.6 million loss in 2011-12 but still had retained earnings of $346 million and then collapsed in early 2013 after traffic forecasts fell massively short. The audit signing partner was Scott Guse from KPMG and the final claimed net assets were $945 million. Investors lost more than $1 billion and Transurban finished up with the assets. A total disaster put together by Macquarie.

Commander Communications: after new CEO Amanda Lacaze took an axe to the balance sheet in February 2008, the net assets were only at $20.68 million by the time it collapsed six months later with accumulated losses of $211 million. The final auditor was RD Dring from PwC. Initially raised $75 million at $1.20 a share in November 2000 in one of the last tech floats after the Tech Wreck first struck in April 2000.

Coronado Global (CRN), $2.61b: US company which is dual listed with Australia secondary. Owns the Curragh coal mine in Queensland's Bowen Basin which it bought from Wesfarmers in 2017. Raised $774m when it floated 20% at $4 a share in October 2018 but the stock was down to 10c by June 2025 so a shocker for investors.

Dick Smith: Woolworths sold the business to private equity firm Anchorage for $20 million in 2012 after booking a $420 million write-down the previous year. The final sale price finished at $94 million after Woolworths pocketed some of the upside from Anchorage's $520 million float of Dick Smith 15 months later. The business collapsed on January 4, 2016 after just two years given that it floated in December 2013.

Estia Health (9 years, 2014-2023): originally floated in 2014 when it raised $725 million at $5.25 a share in a Quadrant driven private equity roll-up and flip. After woeful performance, it was then privatised by private equity firm Bain in 2023 in a deal which valued the equity at $3.20 a share or $828 million. Its market cap peaked at $1.4 billion in 2015-16 when the shares topped $7 but then crashed during COVID so this was a dud for public investors who endured the full 9 year public journey.

Goodman Fielder, (10 years, 2005-2015): a corporate raider player in the 1980s built by former New Zealand baker Pat Goodman (of Goodman Group fame) which was privatised by Graham Hart's Rank Group and then refloated at $1.85 a share in 2005, raising $1.72 billion for the equity. It was then taken over by Singapore's Wilmar International for $1.3 billion in 2015, which equated to just 70c per share.

Healthco (HCW): floated by HMC when it raised $650m at $2 in September 2021. The stock has subsequently tanked to just 78c by June 2025 as the Healthscope collapse weighed on investors.

HIH Insurance, (19 years, 1992-2001): was floated in 1992 and then placed in liquidation on March 15, 2001 when it was still claiming to have net assets of $953 million. Market cap peaked at more than $1.5 billion.

Hutchison Telecom (HTA): it's assets are now part of TPG but the shell remains listed and has wracked up $3.2 billion in losses with the original sin being over-paying for spectrum in a competitive auction that effectively also sent One-tel broke. The parent proposed mopping up the final 12.2% in June 2025.

Judo Capital Holdings, $1.41b: the start-up bank focusing on SMEs floated in October 2021 when it raised $653m at $2.10 but was still well below this trading at $1.46 in June 2025. Was added to the ASX200 when CSR was removed courtesy of being taken over.

Latitude Group (LFS): raised $200m at $2.60 in April 2021 but at least there are only around 3000 retail shareholders and the controlling private equity investor KKR hasn't materially sold down and retains a 64% stake. Stock was at $1.11 in June 2025.

Liberty Financial Group (LFG), $1.16b: long-standing non-bank lender which is still controlled by founder Sherman Ma. Raised $320m at $6 in late 2020 IPO. Stock was at $3.14 by June 2025 with a market cap of $950m.

Link Group, (9 years, 2015-2024) Japanese giant Mitsubishi agreed to pay $2.16 per share or $2.1 billion in enterprise terms after years of poor performance, much of which was associated with its UK division. The share registry and investor services business was floated at $6.37 per share in October 2015. However, when you add back the performance of PEXA, which was spun off in 2021, the performance wasn't as bad.

Marley Spoon (MMM): the German-based packaged meals home delivery company floated on the ASX after raising $70 million at $1.42 per share in July 2018. Woolworths then agreed to invest $30 million in June 2019. The $7m equity component was priced at 50c. It then recovered somewhat and did a $16.6 million placement at $1.05 in May 2020 just after COVID hit, which was backed up by a $56m placement at $3.22 in October 2020 as the business seemingly boomed. In all went pear-shaped after that, such that it desperately raised $22.8 million through an entitlement offer at just 16.5c in October 2022. By April 2023 it was unveiling another $52 million capital raising at 17c, along with a proposal to shift its domicile to Germany and merge with a SPAC. The raising was subsequently "upsized" to $57 million. More merger deals and capital raisings were announced in January 2024. The last full year result as an ASX listed public company was dropped on February 29, the last possible day, and revealed a 44.3 million euros loss which lifted accumulated losses to 356m euros and reported negative equity of 49 million euros. We then got the formal ASX delisting proposal on June 11, followed by the June 12 notice of meeting for the EGM vote, which is being held on July 19 in Berlin at 9am. No online participation in being tolerated.

Metro Performance Glass (MPP): the biggest NZ glass manufacturer was floated in 2014 by Sydney-based private equity firm Crescent Capital which only gained control of it through a recapitalisation process two years earlier. Investors stumped up more than $200 million as is explained in this prospectus. Fast forward to August 2025 and investors have dropped $300 million and were being asked to approve a recapitalisation proposal where an outfit called Amari will secure 51% control with an investment of less than $15 million. Ironically, the same Crescent Capital now owns rival glass manufacturer Viridian and has been lobbing competing proposals.

MFS/Octaviar, 2009: plunged to a belated $242 million loss for the half to December 31, 2007 after writing down the MFS Pacific Finance division by $246 million but this still left it claiming to have $1.22 billion in net assets. The market cap peaked at more than $1.5 billion before it collapsed in 2009.

Myer (MYR): a disaster for public investors after it was floated by US private equity firm TPG at $4.10 a share in November 2009, raising $2.337 billion. The stock fell below 10c when COVID struck before recovering to around 68c by June 2025. All up, public investors have lost more than $1.5 billion.

One-tel, (4 years, 1997-2001): collapsed in 2001 with audited net assets of $945 million despite never declaring a profit. Market cap peaked at more than $2 billion on irrational exuberance after the Murdoch and Packer families backed the company.

Pacific Brands, (12 years, 2004-2016): raised $1.3 billion at $2.50 a share in a 2004 IPO and was bought by US clothing company Hanes Brands when it offered $1.1 billion or $1.15 a share in 2016.

Pact Group (11 years, 2013-2024): floated by Pratt family billionaire Raphael Geminder in December 2013 at $3.80 a share raising $649 million from the public and and then market cap peaked at $1.6 billion in 2021 before it was crunched by a variety of issues. A privatisation proposal lobbed in September 2023 at 68c a share valuing the equity in the company at just $234 million. This was then lifted to 84c a share in December 2023 but still failed due to two hold out shareholders. Is now attempting to delist.

Pasminco, (12 years, 1988-2000): floated by North and CRA in the late 1980s and declared a $23 million net profit for 1999-00 but then collapsed shortly after, still claiming to have net assets of $1.5 billion. Market cap peaked at more than $2 billion.

PEXA (PXA): The 2021 PEXA float has been a disaster for the retail investors who paid $17.13 a share as Morgan Stanley Infrastructure Partners pocketed most of the $1.174 billion taken from public investors. With the stock at $12.61 in June 2025, public investors have dropped more than $300 million. The AFR reported that Morgan Stanley Infrastructure Partners doubled its money in two and half years before dumping its 40% stake on public investors.

Platinum Asset Management (PTM): raised $561m from the public at $5 a share when it floated in May 2007, but the stock had crashed to just 56c by June 2025.

PMP/Ovato, (31 years, 1991-2022): the magazine and printing business and was floated by News Corp in November 1991 at $3.40 a share and briefly had a market cap above $1 billion before eventually changing its name to Ovato and collapsing in July 2022. News Corp effectively pocketed $1.2 billion from the PMP float and subsequent sell-down as was explained in this Crikey piece.

Pointsbet (PBH): after a $266.9m loss in 2021-22, this brought total accumulated losses to $549 million. Initially floated in 2019 when it raised $75m at $2 but then did a series of capital raisings to fund its ill-fated push into the US market. Now the subject of a takeover battle.

RAMS (7 years, 2007-2014): floated in July 2007 at $2.50 a share, delivering founder John Kinghorn $650m for 74%, whist he retained 20% and remained chair. The stock subsequently crashed during the GFC when its wholesale funding lines for home loans dried up. Eventually taken over by Resimac for 50.1c per share in 2013-14. See formal addresses at scheme meeting.

Retail Food Group (RFG): originally floated in 2006 when it raised $36.5m at $1 and has since gone on to blow up about $500 million for investors with a series of capital raisings and acquisitions which failed to deliver.

Rivercity Motorway Group (RCY): raised $725m in a June 2006 IPO to fund construction of Brisbane's north-south bypass tunnel but went into administration in 2011 after traffic forecasts proved massively optimistic. The assets finished up with Transurban.

Slater and Gordon, (16 years, 2007-2023): raised $35 million through an IPO priced at $1 a share in May 2007 and never officially collapsed as was rescued in a scheme of arrangement but the final full year result was a $546.8 million loss in 2016-17 and this followed a $1.017 billion loss in 2015-16. Did a massive debt for equity swap to stay listed before Allegro privatised it in 2023 at just 55c a share. The final results showed it carried $1.25 billion in accumulated losses.

Ten Network Holdings, (19 years,1998-2017): Canadian firm Canwest lead a consortium that bought it out of liquidation in 1992 and then after much fighting with Canberra over foreign ownership, it floated in 1998 with a $374 million offer priced at $2.15. It declared a final $231 million loss for the half year to March 30, 2017, and then administrators were appointed in June 2017 when it was still claiming to have net assets of $152 million. Market cap peaked at more than $2 billion.

Timbercorp: floated in 1996 and final full year result was a $44.6 million profit in the year to September 30, 2008. The auditor was Sandra Pelusi from Deloitte and it collapsed in April 2009, still claiming at the time to have net assets of $595 million.

Virgin Australia, (18 years, 2002-2020): initially floated by Richard Branson as Virgin Blue after the 2001 Ansett collapse and its final result for the half year to December 31, 2019, was a net loss of $104.8 million which left the business with negative net assets of $1.6 billion. The market cap peaked at more than $1 billion when it was making more than $200 million a year. Private equity firm Bain bought it out of administration in 2020-21 and is looking to refloat the business in 2025.

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Floats since COVID struck which have been a success

Brazilian Rare Earths (BRE): raised $50m at $1.47 in December 2023 and the stock was trading at $1.95 by June 2025 after early trading above $3.

Maas Group (MGH): Wes Maas pocketed $52 million selling down his 77.4% holding in equipment hire company Maas Group to 55.6%, leaving him with an equity stake worth $294.6 million based on the group's $2 issue price. The stock was above $4 in June 2025 giving it a market cap of $1.48 billion.

Ventia Services (VNT): floated by joint owners CIMIC and Apollo at $1.70 in November 2021 and the stock had reached $4.80 and a market cap of $5 billion by June 2025 with both major shareholders completely off the register after a series of sell-downs.

Disappointing floats since COVID struck

Peter Warren Automotive (PWR): Raised $260m at $2.90 in April 2021 but stock had crashed to below $1.50 by June 2025.

Copyright © 2025 The Mayne Report. All rights reserved

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