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IPO activity hits 20-year low, but funds raised surge

Australia’s initial public offering (IPO) market in 2024 saw its lowest activity in two decades. Poor listing volumes reflect another challenging year for the IPO market, with significant macro and political factors globally. The year had only 29 listings, marking a 9 per cent decline on the 32 listings in 2023. At the same time, total funds raised surged 387 per cent to $4.1 billion, compared to $847 million in 2023.


Report summary

  • 29 new listings* on the Australian Securities Exchange (ASX), compared to 32 listings in 2023 and 87 IPOs in 2022.
  • Total funds raised increased 387 per cent to $4.1 billion, compared to $847 million in 2023.
  • There were 11 large cap** listings in 2024 compared to 7 in 2023 and they contributed 96% of the total funds raised, with 3 listings with market caps in excess of $1 billion.
  • The Materials sector continued to dominate the IPO market, accounting for 13 listings (45 per cent of total IPOs). However this was a percentage decline from 72% in 2023, and also a decline on the five-year average of 56 per cent.
  • New South Wales recorded the most listings in the year (12) for the first time since 2019 with new market entrants in 8 sectors.
  • The average year end gain for new listings was 12 per cent which exceeded the ASX All Ordinaries Index gain of 8 per cent.

 

The 2025 IPO Watch Australia Report includes commentary and data analysis on share price performance, sector analysis, IPO subscription rates, a review of activity by quarter and the market outlook for the remainder of the year.

*Certain listings are excluded from the analysis including exchange traded funds, backdoor listings and secondary listings with no new capital raised. **Large cap companies are defined as those with a market capitalisation in excess of $100 million. Small cap, companies are defined as those with a market capitalisation of $100 million or less.

IPO Watch Australia Report

A summary of listing activity for the last 12 months

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Subdued early start to 2025

There are only three upcoming listings raising new capital on ASX as at 4 January 2025, indicating there is not going to be an immediate uptick in IPO activity in the first quarter of the year. Two of the three listings are junior exploration companies.

A number of listings were withdrawn during the year as IPO hopefuls registered their intention to list with the ASX but did not manage to meet the listing requirements. Conditions remain challenging in the IPO market at present and any marked improvement is likely be in the second half of 2025. The effects of a change in presidency in the US also present a potential impact on both the Australian and global markets in 2025.

"There continues to be a high degree of uncertainty, making it difficult to predict when the IPO market in Australia will experience any substantial rises in activity. The outlook for 2025 is unclear, with the pipeline currently limited to only three small-cap listings."
Marcus Ohm
Corporate & Audit Services Partner

Key findings

Declining Materials sector contribution

Ten sectors recorded new market entrants in the year, an increase from 2023 where only 7 sectors were represented. The Materials sector has historically recorded the most new listings, and whilst that was still the case in 2024, (13 new listings, 45% of total listings), proportionately this has reduced from 2023 (72% of listings) and the 5-year average of 56%.

Notably, the Software & Services sector did not record any new listings for the first time since 2010, underscoring ongoing challenges in the technology space.

Subdued activity across the year

In terms of activity by quarter in 2024, the March and September quarters recorded 5 and 4 listings respectively whilst there were slightly increased listings in the June and December quarters of 9 and 11 listings each. There were ongoing difficult conditions for listings throughout the year with no specific window for increased activity being present during the year.

Materials listings were evenly spread across the year, with 4 listings in the first quarter followed by 3 listings in the remaining quarters. There was only one large Materials listing in the year, Metals Acquisition Limited (ASX: MAC) which raised $325 million.

Falling subscription levels

Only 19 of the 29 listings in the period managed to raise their maximum target amount (66%), a considerable drop from the prior year where 91% of listings completed fully subscribed listings. In addition, a number of late-stage IPOs which had proposed listing dates were withdrawn in 2024.

Only 6 (21%) of the listings in the year were underwritten compared to 25% in 2023. The 6 listings underwritten were all large cap companies.

Positive share price performance on average

The average year end gain for new listings was 12 per cent which exceeded the ASX All Ordinaries Index gain of 8 per cent. This contrasts favourable with 2023 when new listings recorded an average year end loss of 10 per cent (compared to an ASX gain of 9 per cent).

In total, 38 per cent of new listings recorded a year end gain compared to issue price.

About IPO Watch Australia

First published in 2004, IPO Watch Australia is a benchmarking-based report. The research analyses Australian listing activity. The primary report is released in January, and it explores IPO activity over the previous 12-month period. The Mid-Year Report is a short-form report published in July and it focuses on market activity for the first six months of the year. The reports are authored by Marcus Ohm, a Corporate & Audit Services partner from HLB Mann Judd Perth.

About HLB Mann Judd

We are an association of award-winning accounting and advisory firms in Australia, New Zealand and Fiji. Our firms currently audit over 6% of all ASX-listed companies and 10% of all ASX-listed resources companies in Australia. In addition to audit-related services, HLB Mann Judd provides a broad range of advisory and tax services. We can assist with the preparation for an IPO and in evaluating the benefits of an IPO against alternative strategic options.

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