Many, if not most, of the most popular passive income stocks on the ASX have reset their record highs over the past 12 months. That includes Commonwealth Bank of Australia (ASX: CBA), Wesfarmers Ltd (ASX: WES) and Coles Group Ltd (ASX: COL). Believe it or not, there’s a popular income stock that last hit a new all-time high more than five years ago.

That passive income stock is none other than toll-road operator Transurban Group (ASX: TCL). Yes, Transurban shares last hit an all-time high back in February of 2020, briefly crossing $16 a share for the first (and so far only) time in its history before topping out at $16.30.

Then, the COVID-19 pandemic hit, and Transurban was down to under $11 a share two months later.

The company has recovered, of course, but never reached those heights since. Today, at $14.97 a share at the time of writing, Transurban remains down more than 8% from that all-time high from almost six years ago.

Despite this share price stagnation, the Transurban dividend has never been higher.

The company did have to slash its shareholder payouts for a few years, thanks to the effects of the pandemic (collecting tolls was a tough business back then with all of the lockdowns and such).

Over 2019, this passive income stock paid out a total of 59 cents per share in dividends. But that fell to just 47 cents in 2020 and 3.65 cents in 2021.

However, 2022 saw the company’s dividends begin to recover. That year had Transurban fork out 41 cents per share, which rose to 58 cents in 2023. 2024 saw investors get another pay rise, which finally broke the 2019 record with 62 cents per share doled out over that year.

This passive income stock is set to pay a 4.6% yield

This year, that record was broken again. Transurban paid out its interim dividend of 32 cents per share in February, followed by its final dividend, worth 33 cents per share, in August. That total of 65 cents per share gives Transurban a trailing dividend yield of 4.48% at the current share price.

Transurban is one of the few ASX 200 passive income stocks to give its investors forward guidance when it comes to dividends.

Earlier this month, the toll road operator revealed that it intends to pay out 69 cents per share over 2026. That will come from an interim dividend worth 34 cents per share, and presumably, a final dividend of 35 cents per share.

Let’s say that does turn out to be accurate (the company did caveat the announcement with “subject to performance and economic factors”). Those payouts would give this passive income stock a forward dividend yield of 4.61% at today’s pricing.

Keep in mind that Transurban’s dividends usually don’t come with much in the way of franking credits. Even so, many passive income investors might find that yield difficult to turn down in today’s environment.

The post Down 8%, this passive income stock offers a 4.6% dividend yield! appeared first on The Motley Fool Australia.

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• 3 ASX dividend shares to buy with $5,000
• Transurban announces 34c interim distribution and reaffirms FY26 guidance
• Are Transurban shares a buy for dividend income right now?
• 3 ASX dividend machines I think will keep paying for decades
• 3 ultra-reliable ASX dividend stocks I’d buy for long-term income

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group. The Motley Fool Australia has positions in and has recommended Transurban Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Analysts at Macquaire are forecasting some serious upside for Wisetech Global Ltd (ASX: WTC) shares, saying the company “can and will fundamentally reshape the logistics industry”.

Wistech shares have bounced back recently after hitting a 12-month low of $61.49 in November. The stock is now changing hands for $74.49, but the team at Macquarie still believe the shares are materially undervalued following an investor day presentation this week.

Company taking big swings

Wisetech chief executive Zubin Appoo said in his presentation to investors that the company was focused on “our big rocks”, which were initiatives which moved the needle and drove value for the company.

Those big rocks, and everything we do, anchor back to why we exist. We build products that solve the most complex, high-stakes problems in global trade and logistics – and for our customers that translates into two things that matter above all else: efficiency and throughput at levels they couldn’t previously reach, and compliance and risk reduction in a world where global trade is only becoming more complex.

Mr Appoo said the company was also harnessing artificial intelligence to drive productivity across products and inside the company itself.

Shares looking cheap

The team at Macquarie have analysed the investor day presentations and as a result, have upgraded their rating on Wisetech shares to outperform.

They said the company was a true innovator in the logistics sector.

Wisetech can and will fundamentally reshape the logistics industry. We see their highly differentiated proprietary dataset as a competitive advantage that, coupled with E2Open, increases confidence in execution. However, with more than 90% of revenues from customers perceiving disruption, friction will remain very high. These challenges are commensurate with the size and deliverability of the opportunity, but (with) a changing growth dynamic … it will not be an easy path.

Macquarie said there were several risks to guidance for Wisetech, including the “inherent friction in reshaping a market”, which the company was doing with its container transport optimisation product, for example.

But they said they were “more confident in the long-term execution” while remaining cautious on the FY26 result and guidance for FY27.

Macquarie said new product delays, potential reinvestment and customer friction were the risks over the medium term, “however, execution risks are commensurate with the size and deliverability of a massive market opportunity”.

Macquarie has a 12 month price target of $108.50 on Wisetech shares, which coupled with the dividend, would reflect a total shareholder return of 49.8 per cent over a year if achieved.

Wisetech was valued at $24.8 billion at the close of trade on Thursday.

The post Macquarie tips 50% upside for Wisetech Global shares appeared first on The Motley Fool Australia.

More reading

• How on earth has the WiseTech Global share price exploded 20% in 17 days?
• Bell Potter names the best ASX 200 shares to buy in December
• 4 ASX shares I’d buy today with $10,000
• These ASX innovators could be the market’s next big winners
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Cameron England has positions in WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Two popular S&P/ASX 200 Index (ASX: XJO) media shares – REA Group Ltd (ASX: REA) and Nine Entertainment Co Holdings Ltd (ASX: NEC) – are hovering around year-to-date lows.

While the drivers are different, both ASX 200 media shares are facing a mix of structural headwinds, regulatory pressure, and investor re-rating.

Let’s take a closer look at both media companies and find out whether analysts consider the recent downturn a chance to buy at lower prices.

REA Group Ltd 

The share price of REA Group, the owner of realestate.com.au, has tumbled 20% in the past six months and 9.7% in the past month to $192.41 at the time of writing.

The decrease appears to be more about sentiment and future growth expectations than a collapse in fundamentals. On paper, the long-term business of this ASX 200 media share remains operationally strong. REA Group dominates its market, the pricing model is powerful, and earnings are still growing.

However, there are a few reasons why investors are selling their REA Group shares. The company recently reported a decline in new national listings, and in May, the ACCC launched a probe into REA’s pricing practices.

Competition for REA could also be fiercer after competitor Domain was acquired by CoStar Group Inc (NASDAQ: CSGP) in August. 

Analysts remain cautiously optimistic. Morgans recently cut its target price for the next 12 months to $247. This is a little higher than the average price target set by analysts and indicates a 28% upside from its current share price. 

Analysts at Macquarie Group Ltd (ASX: MQG) recently sliced their 12-month target to $220 because of uncertainty around AI, increased competition, and the ACCC regulatory investigation.

Macquarie’s target is on the low side, suggesting an upside of 14%.  

Nine Entertainment Co Holdings Ltd

Nine Entertainment’s share price drop was mainly technical, linked to a special dividend paid after selling its 60% stake in Domain in May. On the ex-dividend date (11 September), the ASX 200 media share fell sharply by 34% to reflect this payout.  

Beyond the special dividend, the media company is also battling a weaker business outlook. Analysts are particularly concerned about Nine’s reliance on its television business, which is vulnerable to a softer advertising market. That has been a reason for some brokers to cut revenue estimates for 2026 from $2.7 billion to $2.3 billion.

In the past 6 months, Nine Entertainment shares have lost 30.5% in value. At the time of writing, the media stock trades at $1.11 per share, almost 11% lower than a year ago.

The main challenge for Nine Entertainment will be to stabilise earnings with its core television and radio assets and deliver growth through digital platforms, such as Stan.

The research team at Macquarie said they remained cautious with regard to free-to-air television advertising spending, “and the need to constantly manage costs to support earnings”.

In recent weeks, most analysts have downgraded their price targets to an average of $1.44, suggesting a 28% upside at the current share price. The majority of analysts still rate the media stock a hold or buy, mainly due to the weaker share price.

The post Where to from here for these 2 ASX 200 media shares appeared first on The Motley Fool Australia.

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• Top ASX shares to buy right now with $1,000
• Which three media companies could deliver double-digit returns?
• This is a great place to invest $1,000 into ASX shares right now
• Why today’s cheap ASX shares could double my money during the next bull market
• 5 ASX 200 large-cap shares re-rated by Morgans

Motley Fool contributor Marc Van Dinther has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CoStar Group and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Nine Entertainment. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

With 2026 fast approaching, now is a great time to review your portfolio, and perhaps sell a few S&P/ASX 300 Index (ASX: XKO) shares to help fund potentially more promising ASX shares to buy.

With that in mind we look at two ASX companies – an insurance brokerage company and a tech company which provides mining software solutions – that analysts have recently tipped as sells (courtesy of The Bull).

Limited upside left for this ASX 300 share

The first company you might want to sell is RPMGlobal Holdings Ltd (ASX: RUL).

That’s according to Medallion Financial Group’s Stuart Bromley.

RPMGlobal shares are up 0.3% in late morning trade on Friday, changing hands for $4.915 apiece. This sees the share price up 63.8% in 2025.

“RUL is a high-quality mining software business, operating as a pure play software-as-a-service provider to major mining clients and state governments,” Bromley said.

So, why is he issuing a sell recommendation on the ASX 300 share?

Bromley explained:

RUL received a takeover offer at $5 a share. A RUL shareholder vote regarding the takeover proposal is scheduled for December 19. The stock was trading at $4.91 on November 27, so upside is limited.

That takeover offer was lobbed by United States based mining equipment manufacturer Caterpillar Inc (NYSE: CAT). RPMGlobal announced the acquisition deal on 1 September. And investors responded by sending the share price rocketing 22.8% on the day.

Bromley conclude, “With many quality large market capitalisation stocks now trading at meaningful discounts, we believe it’s more beneficial to sell and redeploy the capital into more attractive opportunities.”

Which brings us to…

Company facing earnings pressure

Peak Asset Management’s Niv Dagan believes it is time for investors to sell Steadfast Group Ltd (ASX: SDF).

“Steadfast operates a large general insurance broker network,” he said.

Steadfast shares are up 2.2% at time of writing on Friday, swapping hands for $5.11 each. But the ASX 300 share has underperformed this year, with the Steadfast share price down 12.6% in 2025. Losses which will have been modestly eased by the stock’s 3.8% fully franked dividend yield.

And Dagan believes the company will struggle to outperform in the year ahead.

“Steadfast has materially reduced fiscal year 2026 premium rate expectations, cutting Australian premium growth guidance from between 3% and 5% to between 1% and 2%,” he noted.

Dagan added:

While underlying net profit after tax guidance remains between $315 million and $325 million in fiscal year 2026, the company is increasingly reliant on acquisitions and cost-out initiatives to meet earnings targets.

Connecting the dots, Dagan said, “Structural pressures in insurance broking are intensifying. The shares have fallen from $6.63 on October 28 to trade at $5.225 on November 27.”

The post Sell alert! Why analysts are calling time on these 2 ASX 300 stocks appeared first on The Motley Fool Australia.

More reading

• What are analysts saying about Goodman and these ASX stocks?
• Why are Steadfast shares sinking 5% today?
• Macquarie tips 37% upside for Steadfast shares

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended RPMGlobal and Steadfast Group. The Motley Fool Australia has positions in and has recommended Steadfast Group. The Motley Fool Australia has recommended RPMGlobal. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Centuria Industrial REIT (ASX: CIP) share price is in focus after announcing a quarterly distribution of 4.2 cents per unit for the period ending 31 December 2025.

What did Centuria Industrial REIT report?

• Quarterly distribution of 4.2 cents per ordinary unit, payable on 30 January 2026
• Distribution remains 100% unfranked
• Ex-date is 30 December 2025; record date is 31 December 2025
• Distribution relates to the quarter ended 31 December 2025
• Distribution Reinvestment Plan (DRP) is available

What else do investors need to know?

This quarterly distribution matches Centuria Industrial REIT’s previous payouts, in line with the REIT’s track record of delivering regular income for investors. The DRP remains in place, offering unitholders the option to reinvest their distribution payments.

It’s worth noting that no portion of this distribution is franked, which may be important for investors seeking franking credits. Centuria has not included any conduit foreign income in this quarter’s distribution.

What’s next for Centuria Industrial REIT?

Looking ahead, Centuria Industrial REIT will continue managing its portfolio of industrial properties while providing unitholders with regular quarterly distributions. Investors should watch for the REIT’s next earnings update, which will include details on property performance and guidance for future distributions.

As always, ongoing portfolio management and property acquisitions or disposals could shape Centuria’s future results. The DRP offers a hassle-free way for unitholders to grow their investment over time.

Centuria Industrial REIT share price snapshot

Over the past 12 months, Centuria Industrial REIT has risen 16%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has increased 2% over the same period.

View Original Announcement

The post Centuria Industrial REIT announces 4.2 cent December 2025 distribution appeared first on The Motley Fool Australia.

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• ASX healthcare stock debuts at a massive discount to its initial public offer price
• Dexus issues $500 million in new subordinated notes to boost flexibility
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• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

It’s been a stunning two-and-a-half weeks or so for the WiseTech Global Ltd (ASX: WTC) share price on the ASX.

On 18 November last month, this ASX 200 tech stock closed at $62.63 per share after hitting a new 52-week low of $61.49 in the same session.

Today, 17 days later, those same Wisetech shares are currently trading at $73.92, as of the time of writing. That’s about 20.2% above the 52-week low we saw just two-and-a-half weeks ago.

Given the magnitude of this rebound, many ASX investors may wonder how Wisetech has managed such a stunning comeback. Let’s dive into that question today.

How is the WiseTech Global share price up 20% in 17 days?

Well, there are a few things to discuss. Firstly, November, particularly the first half of the month, was a tough time for the entire Australian market. Following the US’s lead, the S&P/ASX 200 Index (ASX: XJO) fell a nasty 6.2% between 31 October and 21 November. Tech stocks were hit even harder than the broader market. Over the same period, the S&P/ASX 200 Information Technology Index (ASX: XIJ) plunged by an even more horrid 15.7%.

Since 21 November, both indexes have bounced back. But, as is often the case with these things, tech has shot higher than the broader market since. As it stands today, the ASX 200 is up 2.5% since 20 November. The ASX 200 Information Technology Index, in contrast, has rebounded 5.1%.

The Wisetech share price was evidently caught up in the sell-off, but also fully participated in the magnified rebound.

There are other developments to note, too. For one, Wisetech reaffirmed its FY2026 guidance, expecting revenues of between $1.39 and $1.44 billion and earnings before interest, tax, depreciation, and amortisation (EBITDA) of between $550 and $585 million. This was announced on, as it happens, 21 November, which probably reassured investors that the dip the company has just bottomed out on may have been a little overblown.

That was likely assisted by several brokers coming out in the subsequent days and calling Wisetech shares a buy at those depressed levels.

The Wisetech share price has historically been volatile. More recently, that volatility has been exacerbated as investors continually weigh the company’s leadership and management controversies against its stellar financials. Let’s see where this ASX 200 tech share heads next.

The post How on earth has the WiseTech Global share price exploded 20% in 17 days? appeared first on The Motley Fool Australia.

More reading

• ASX healthcare stock debuts at a massive discount to its initial public offer price
• Dexus issues $500 million in new subordinated notes to boost flexibility
• Fletcher Building updates funding: repays USPP, extends bank facilities
• 5 things to watch on the ASX 200 on Friday
• AMP suspends AMPPB hybrid notes for redemption and removal

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Bendigo and Adelaide Bank Ltd (ASX: BEN) this week announced a deal to acquire RACQ Banks’ retail lending assets and deposits, which are worth an estimated $2.7 billion and $2.5 billion, respectively.

Managing Director Richard Fennell said the deal, which is expected to be completed in the first half of FY27, would add to Bendigo and Adelaide Bank’s current deposit franchise, and “leverages our proven ability to efficiently integrate significant portfolios and is expected to drive improved shareholder returns through cost efficiencies and geographic diversification”.

The transaction is expected to generate $50-$55 million in net interest income and add 4-5 cents to the company’s earnings per share.

Strategically sensible move

The team at Jarden has had a look at the proposed deal, which is subject to regulatory sign-off, and said the Queensland-focused deal makes sense.

Bendigo acquired the Queensland-based First Australian Building Society in 2000 and have a reasonably strong presence in Australia’s most dynamic state. The acquisition fits well with their strategic pillar of ‘optimising their deposit base’ with retail deposits representing 92% of the RACQ lending portfolio (with a high proportion of lower-cost deposits). It also supports their ambition in becoming a greater presence in agri, and at book value, we believe the price is full, but fair. We will process the acquisition upon regulatory approval – financially the acquisition is relatively immaterial but strategically it is on par.

Jarden has a neutral rating on Bendigo and Adelaide Bank shares and, following the investor day presentations earlier this week, has kept its price target for the company’s shares at $11.

Including a 6.2% dividend yield, this would equate to a total shareholder return of 14.8% over a year based on the company’s closing share price of $10.13 on Thursday.   

The Jarden analysts said bank strategies in general were focused on two main themes at the moment – optimising lower cost deposit bases and minimising costs generally, “reflecting a difficult environment”.

Both are challenging. Heightened focus on growing deposits (alongside deposit alternatives i.e. stablecoins) is set to only increase competitive pressure on paid rates. Meanwhile, the combination of stubborn inflation and regulatory scrutiny will continue to drive cost expansion. Bendigo’s acquisition of RACQ’s book is a step in the right direction in growing low cost deposits, but the productivity benefits required to hold business as usual costs to inflation are unclear.

Bendigo and Adelaide Bank was valued at $5.75 billion at the close of trade on Thursday.

The post This bank’s shares could deliver double-digit returns analysts say appeared first on The Motley Fool Australia.

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• Bendigo and Adelaide Bank unveils RACQ Bank acquisition in investor update
• ANZ shares are lagging the other big banks: Here’s why
• Why these ASX 200 shares crashed 10%+ in November

Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Bendigo And Adelaide Bank. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX gold share Black Cat Syndicate Ltd (ASX: BC8) is trading at $1.03 per share on Friday morning, up 1.67%.

Just two years ago, this ASX small-cap stock was trading at 25.5 cents per share.

Had you put just $2,000 into Black Cat shares back then, they would be worth $8,078.29 today.

Let’s find out more about why this ASX gold share has shot the lights out over the past 24 months.

What a run for this ASX gold share!

Black Cat is a Western Australian gold miner and antimony explorer.

The company’s total gold resources are 2.5Moz at 2.9 g/t Au, with plans to expand to 3Moz within five years.

In a recent presentation, Black Cat said it’s targeting annual gold production of more than 100,000 ounces (oz) in FY26 and 130,000 oz in FY27.

The company owns three projects.

Kal East produced first gold in the second half of 2024. It has a Mineral Resource Estimate (MRE) of 18.8mt at 2.1 g/t au for 1,294,000 oz and a 1.2Mtpa processing facility on site.

Paulsens recommenced gold production late last year. It has a 450ktpa processing plant on site and an MRE of 4.4mt at 3.9 g/t au for 549,000 oz.

Within Paulsens is the Mt Clement antimony project, which Black Cat claims is one of Australia’s largest deposits with a resource estimate of about 794kt at 1.7% Sb.

The miner’s third gold project is Coyote, which has been in care and maintenance since 2013. Black Cat aims to restart the mine in FY28. It has a 300ktpa processing plant on site and an MRE of 3.7mt at 5.5 g/t au for 645,000 oz.

Black Cat’s longer-term goal is to produce 200,000 oz of gold per annum by FY29, after Coyote begins production.

What’s new with Black Cat?

This week, Black Cat announced a joint venture with Dreadnought Resources Ltd (ASX: DRE).

Under the deal, Black Cat will develop and process ore from Dreadnought’s high-grade Star of Mangaroon gold project.

Black Cat owns about 202.5 million Dreadnought shares, and its non-executive chair, Paul Chapman, is also Dreadnought’s non-executive chair.

Star of Mangaroon is 330km by road from Paulsens. Black Cat expects up to 110,000 tonnes of gold to be processed next year alone.

Under the deal, Black Cat will engage and manage contractors and provide up to $10 million in funding to develop and haul the ore.

Dreadnought and Black Cat will share surplus cashflow at a 50/50 split for the first $80 million and then 70/30 (majority to Dreadnought) for any additional surplus cashflow.

Black Cat also gets first rights to enter into similar agreements for any other mining operations around the Star of Mangaroon and a right to match any third-party offer to acquire Dreadnought’s tenements.

The benefits for Black Cat include additional cashflow, greater operational flexibility, and strategic exposure to new nearby discoveries.

Black Cat’s Managing Director, Gareth Solly, said:

The Star of Mangaroon is an excellent project that dovetails nicely into our Paulsens’ strategy.

The high-grade feed will allow Paulsens to preferentially treat high-grade Ore from the Paulsens underground while stockpiling lower grade material, increasing total gold production in the short to medium term.

In addition, Black Cat has exposure to further discoveries around the Star of Mangaroon, which we see as highly prospective.

The post $2,000 in this ASX share two years ago would be worth $8,078 today appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shares in Saluda Medical, Inc (ASX: SLD) have opened sharply lower than the initial public offer price on its first day of trade on the ASX.

The company’s shares were trading at $1.59 mid-morning, well below the $2.65 price at which they were offered to new shareholders.

Saluda Chief Executive Barry Regan said in a statement issued to the ASX that the listing was a significant achievement for the company.

Today marks an important milestone for Saluda Medical and the patients whose lives we aim to transform through objective, personalised neuromodulation. We are pleased with the momentum in the first months of FY26, and we remain on track to meet our full-year guidance. The strength of our clinical evidence, the scalability of our commercial model, and the dedication of our team positions the Company well to continue to make a significant difference in our global market. We are grateful for the support of our new and existing securityholders, and proud to be joining the ASX.

Funds raised to drive growth

Saluda raised $230.8 million through the issue of new shares at $2.65 each, with the money to be used “to expand Saluda’s sales team, marketing and commercial support and product development.”

The company, founded in Sydney in 2010, describes itself as a “commercial stage” medical device company, “focused on developing treatments for chronic neurological conditions using its novel neuromodulation platform.”

The company explained further in a release issued earlier this week:

Saluda’s product, the FDA-approved Evoke System, is designed to treat chronic neuropathic pain by providing SCS (spinal cord stimulation) therapy that senses and measures neural activation to optimise therapy and reduce patient and clinician burden. Unlike standard SCS devices, which only provide fixed levels of stimulation, Saluda’s system leverages evoked compound action potentials, or ECAPs, to measure the spinal cord’s response to electrical stimulation and adjust the stimulation accordingly to achieve and continuously maintain a targeted level of neural activation. This ensures the therapy remains at the patient specific prescribed level of neural activation, providing consistent and effective outcomes.

The company said clinical study results demonstrated “clinically superior” pain relief when tested against other methods, and Saluda would seek to gain a larger slice of the more than US$23 billion market for people suffering chronic pain in the US alone.

The company said in its prospectus that it had generated US$70.4 million in revenue in FY25, with that forecast to rise to US$81.9 million in the current financial year.

The company made a net loss of $123.5 million in FY25, which is expected to increase this year to $145.5 million.

To achieve its revenue growth targets, the company aims to increase the number of trained sales representatives in the US by more than 80% to 114 by the end of the current financial year.

The post ASX healthcare stock debuts at a massive discount to its initial public offer price appeared first on The Motley Fool Australia.

More reading

• How on earth has the WiseTech Global share price exploded 20% in 17 days?
• Dexus issues $500 million in new subordinated notes to boost flexibility
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• AMP suspends AMPPB hybrid notes for redemption and removal

Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.