After several years of historically low activity, Australia’s IPO market is beginning to show tentative signs of recovery, according to the latest HLB Mann Judd IPO Watch Report.
While 2025 was far from a breakout year, the data suggests conditions may be slowly turning, setting the stage for a potentially stronger environment in 2026.
IPO activity has been heavily constrained over the past three years as economic uncertainty, geopolitical tensions and volatile markets pushed many businesses to delay public listings. Instead, companies have increasingly opted to remain private, supported by deep pools of private capital and a desire to avoid the regulatory complexity and market scrutiny associated with going public.
In 2025, 35 companies listed on the ASX. While this remains well below the 20-year average of 83 listings, it marked a modest improvement on the 29 IPOs recorded in 2024 and 32 in 2023. The gradual increase suggests confidence may be starting to return, even if momentum remains fragile.
However, the improvement in listing numbers did not translate into higher capital raisings. Total funds raised through IPOs fell to $3.2 billion in 2025, down 22 per cent from $4.1 billion the previous year. The average amount raised per IPO also declined, falling from $142 million to $92 million. This reflects a market still dominated by smaller, more cautious transactions rather than large, transformational floats.
Small cap listings continued to play a central role, consistent with past IPO cycles during slower periods. The number of small cap IPOs increased by 11 per cent compared to 2024, with total funds raised rising from $166 million to $204 million. Average capital raised per small cap listing edged higher as well, indicating steady but selective investor appetite for early-stage opportunities.
From a sector perspective, materials stood out as the clear leader in 2025, accounting for nearly two-thirds of all IPOs. Strong commodity prices helped underpin this activity, with companies seeking funding for exploration and development projects across gold, rare earths, copper and iron ore.
Materials also led the market in capital raised, followed by real estate and transportation, highlighting the continued appeal of asset-backed and infrastructure-related opportunities.
Despite the challenging backdrop, share price performance from new listings was relatively encouraging. On average, IPOs delivered a 15 per cent gain on their first day of trading and were up 23 per cent by year-end, comfortably outperforming the broader market. However, this performance was uneven – while most companies recorded initial gains, fewer than half remained above their issue price by the end of the year, reinforcing the importance of selectivity for investors.
Global uncertainty continues to weigh on sentiment. Trade tensions, tariff risks and ongoing geopolitical developments remain key considerations for boards assessing whether now is the right time to list. At the same time, private capital continues to offer an attractive alternative, particularly given perceptions that listing remains costly and complex, despite regulatory efforts to streamline the process.
Looking ahead, expectations for 2026 are cautiously optimistic. While the IPO pipeline is still soft, several higher-profile businesses have flagged intentions to float later in the year. History suggests IPO markets do not remain subdued indefinitely, and as conditions stabilise, quality businesses are likely to re-engage with public markets.