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It’s been an undeniably slow year for IPOs, with just 25 fresh-faced debutants joining the Australian stock exchange through floats in 2024.
That’s nearly half as little as 2023 when 44 companies rang the bell. Then, two years back, in 2022, the ASX saw 104 IPOs; that number then more than doubled again to 241 in 2021 in the wake of the COVID-19 pandemic.
From 2021 to this year’s calendar run, that’s an 89.7% drop in new arrivals.
There were some big winners, like Sun Silver’s red-hot run in May and the one that caught general punter eyes, Guzman Y Gomez, but overall it’s been quite barren.
For investors looking to find fresh opportunities, barely any new companies joining the local bourse can make things tricky – but it’s not all doom and gloom.
“It doesn’t generate a lot of interesting, but while we have seen that IPOs have been low, what we have seen is green shoots, particularly in the secondary market,” Finola Burke, managing director at RAAS Group, told HotCopper.
“For the last six to almost twelve months, we have actually seen an improvement in secondary offerings; companies coming back to raise capital again.”
Ms Burke said these capital raises – like one that sits under RAAS Group’s eye, Amaero International (ASX:3DA) – will be the key to the IPO market moving forward: Where there’s confidence in the secondary market, floats bloom.
“That’s a driver there, ultimately – the secondary market leads the IPO market.”
Ms Burke also pointed to the large “backlog of companies” that are champing at the bit to join the ASX. She believes many “will come to the market next year” which suggests 2025 may be the long-awaited turning point for what has been quite regularly declining IPO numbers through the last three or so calendar years.
There are already some companies teed up to join the bourse in the near future too, including several that had to bump back from 2024 to early next year:
- Mawson Gold – January 16
- Burrendong Minerals – January 31
- Stormeur – March 3
- Siguiri Gold Corp – March 7
“I was just recently at an IPO day and there were a lot of incoming companies that showed off what they want to bring to market,” Ms Burke added.
For further discussion on the IPOs on the ASX this year, watch the video above.
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