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The five things next year’s IPOs need to make them sing

If next year’s IPO contenders can tick these boxes, they’re a good chance of getting away. If not, they’ll try to use price to bridge the gap, which is never easy. 

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Chemist Warehouse could have floated any year, in any IPO market conditions. It is that strong a business. Its founders chose to list via the backdoor at Sigma Healthcare because it was less expensive, included a value-accretive M&A deal, and the timing worked.

David Di Pilla’s DigiCo Infrastructure REIT is ripe for the times. Data centres are this year’s story of Australian deals – the biggest M&A deal (AirTrunk), biggest public markets raiser (NextDC), biggest cheque by our biggest investor AustralianSuper (DataBank) and now, by far the biggest IPO (five times more IPO money raised than any other float in three years).

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Anthony Macdonald is a Chanticleer columnist. He is a former Street Talk co-editor and has 10 years' experience as a business journalist and worked at PwC, auditing and advising financial services companies. Connect with Anthony on Twitter. Email Anthony at a.macdonald@afr.com

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