Osteopore floats after oversubscribed IPO: Aus shares 0.3% higher at noon

Market Reports

by Katrina Bullock

The Australian share market opened lower following weak leads from Wall Street and is now tracking 0.3 per cent higher at noon. All sectors are positioned in the green at noon, with the REITs sector leading the charge.

The S&P/ASX 200 index is 20 points up or 0.3 per cent higher at 6,751. On the futures market the SPI is 32 points higher.

Company news

Australian Real Estate Investment Trust, APN Convenience Retail (ASX:AQR) has agreed to acquire 7-Eleven Maroochydore, Queensland for $6.85 million. Eighty-five per cent of rental income at the site is derived from 7-Eleven who have agreed to enter into a new 12-year lease as part of the transaction. Settlement is expected before the end of October 2019. Following settlement, the APN Convenience Retail’s fund will comprise of 69 properties valued at over $360 million. This reflects a weighted average capitalisation rate of 7 per cent, and a portfolio weighted average lease expiry of 11.3 years. Its gearing will be 33.5 per cent. Despite the acquisition, there is no change to its previously advised financial year 2020 distribution guidance of 21.8 cents per security. Shares in APN Convenience Retail (ASX:AQR) are trading 0.3 per cent lower at $3.39 at noon.

IPO

Australian biotech company, Osteopore (ASX:OSX), started trading today. Osteopore specialises in the production of 3D printed bioresorbable implants that are used in conjunction with surgical procedures to facilitate the natural stages of bone healing. Osteopore successfully raised $5.25 million at $0.20, and closed its IPO early with strong institutional, high net worth and sophisticated investor demand. This follows news that Resmed CFO, Brett Sandercock is set to join the Osteopore board as non-executive chairman. The company issued shares at 20 cents and started trading on the ASX at 63 cents and is currently trading at 74 cents.

Best and worst performers

The best-performing sector is Real Estate Investment Trusts, adding 0.9 per cent, while the worst performing sector is Industrials, rising 0.03 per cent.

IOOF Holdings (ASX:IFL) continues its bullish run, taking out top spot, as best performing stock in the S&P/ASX 200, rising 10.2 per cent to $6.60. This is followed by shares in Premier Investments (ASX:PMV) and Adelaide Brighton (ASX:ABC).

The worst performing stock in the S&P/ASX 200 is Webjet (ASX:WEB),dropping 4.3 per cent to $11.02, followed by shares in Chorus (ASX:CNU) and Pinnacle Investment Management Group (ASX:PNI).

Asian markets

Japan’s Nikkei is closed due to the Autumnal Equinox, Hong Kong’s Hang Seng has shed 0.1 per cent and the Shanghai Composite has lost 1.1 per cent.

Commodities and the dollar

Gold is trading at US$1,519 an ounce.
Iron ore price fell 0.7 per cent to US$92.56.
Iron ore futures are pointing to a rise of 0.4 per cent.
One Australian dollar is buying 67.72 US cents.