Over the last few years, the number of investors focused on
investing in the global green movement and decarbonised future,
has increased. The movement known as ESG (which stands for
Environmental, Social and Governance) or Eco-investing is a
form of socially responsible investing where investors focus their
trade decisions on companies that prioritise environmentally
and socially friendly practices and products.
Back in 2021 when the idea of green investing was first gaining
momentum, critics said it wasn’t going to work based on the
way machines and businesses are developed to make a profit,
according to former BlackRock Chief Investment Officer, Tariq
Fancy. Fast-forward to 2023 and it’s a different story with some
companies, especially in the mining industry, setting targets
such as Strike Energy (ASX:STX) which is striving to become
Australia’s lowest-cost onshore energy producer, and a globally
competitive urea manufacturer with net-zero carbon emissions
Gold Hydrogen (ASX:GHY) debuted onto the ASX early in January
2023 slotting right into the green ‘hydrogen’ movement at
the right time. Understanding the strategic movement into
hydrogen-powered energy in Australia and around the world,
Gold Hydrogen is well positioned to benefit from increasing
consumer preferences for cleaner energy, and the company
hopes to be the first in Australia to discover naturally produced
hydrogen in the earth’s crust.
In February 2022 Australia sent the world’s first shipment of
liquified hydrogen to Japan in a major milestone as part of the
$500 million Hydrogen Energy Supply Chain (HESC) pilot project.
Gold Hydrogen debuted on the ASX on 13 January 2023, with
an issue price of $0.50 after raising $20 million. The company
proposes to explore, appraise and develop natural hydrogen
within Petroleum Exploration Licence 687 following historical
exploration in South Australia that uncovered natural hydrogen
gas while exploring for oil. Since debut, shares are up 1.96% at
$0.52 as at the time of writing.
IPO Outlook 2023
After a year of high uncertainty and turbulence in the global
macro environment, investor appetite for IPOs declined in
2022 following a record year in 2021. With increasing market
and macro certainty expected in 2023, we may see increased
interest in ASX debutants over the year ahead.
Tiger Tasman Minerals (ASX:T1G) is preparing to list on the
ASX later in February 2023 with a listing price of $0.20 and
hopes of raising $8 million in IPO. The company is an Australian-
based minerals exploration and development company with
strong diversification across its multi-commodity portfolio,
with projects in the proven mining jurisdictions of WA and QLD
focused on copper, lithium, nickel, manganese, silver, gold, base
metals and industrial minerals. T1G is committed to sustainable
approaches to mineral exploration and development with ESG
at the core of its strategy and operating style.
As the world moves toward a greener future, lithium producers
remain a key investment priority for many investors in 2023.
Evergreen Lithium (ASX:EG1) is preparing to list on the ASX
in March 2023 with an issue price of $0.25 and hopes to raise
$7m. The company boasts an extensive landholding at its Bynoe
Lithium Project and an additional compelling tenure prospective
for lithium in the Northern Territory and Western Australia which
is adjacent to Core Lithium’s (ASX:CXO) Finniss Project. Initial
soil sampling and preliminary geochemical activities at the
Bynoe Project have confirmed the company’s view of strong
anomalous lithium in the soil. With intentions to advance three
hard rock lithium projects in Australia, the company is well
positioned to capitalise on the growing EV trend for years to
come once its projects come online.
2020 - 2021 were the years of the tech dream, as investors saw
high share price growth in this sector while interest rates were
at record lows and funding for non-profitmaking technology
companies was easily attained.
Fast forward to 2022 and there’s no denying it was a tough year
for the technology sector as investors fled growth stocks in
favour of defensive, value stocks to weather the high inflation,
rising interest rate environment. Stepping into 2023 has already
seen a pivot in investor confidence back into the technology
sector amid slowing outlook for interest rate hikes both at
home and overseas.
Since January 1, the technology sector is up almost 10%, led
by rallies for the likes of Wisetech Global (ASX:WTC) up 26%
YTD, Altium (ASX:ALU) up 15.60% YTD, and NextDC (ASX:NXT)
up 14.89% YTD.
The buy now, pay later sector is one area of technology that
investors have reopened their minds to in 2023 as leading players
like Sezzle (ASX:SZL) underwent high cost-cutting strategies
in 2022 in a bid to turn a profit, which worked. Shares in Sezzle
are up 63% YTD, regaining some momentum from the sharp
sell-off last year.
Investors aren’t as risk-hungry though, like they were in 2020,
with the majority taking time to assess profit outlooks and
subscription model revenue growth before diving into high-
growth technology shares in 2023.
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