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David Fickling

Why Australian Floats Keep Sinking

IPOs have provided poor returns on average since 2009 relative to the benchmark index.

It's not been a great week to be an investor in Australian initial public offerings.

On Monday McAleese, a trucking company valued at A$466 million ($351 million) when it debuted in a 2013 stock-market float, suspended its shares and appointed administrators after losing a slew of contracts . The next day Surfstitch, a fashion website listed in 2014 with a A$214 million market cap, plunged 54 percent after forecasting losses and A$99 million of writedowns .