IPO Watch Australia: Signs of Improvement

While initial public offering (IPO) activity in Australia remained subdued throughout 2025, the latest HLB Mann Judd IPO Watch Report shows there were encouraging signs of recovery as the year progressed, pointing to a potential uplift in the Australian Securities Exchange (ASX) IPO market in 2026.

The Australian IPO market has had historically low numbers of listings over the past three years, shaped by ongoing economic and geopolitical uncertainty. Many businesses have opted to delay their listings, favouring the stability of private ownership and avoiding the additional scrutiny that comes with going public. However, the Australian IPO market began to show early signs of recovery in 2025.

It has been a similar story globally. In the US, for example, following the disruption caused by the “liberation day” tariffs announcement and the US government shutdown, listing activity accelerated in 2025, boosted by strength in technology and AI infrastructure companies.  Hong Kong also experienced a recovery during the past year, again, thanks to AI companies, as well as companies in mainland China seeking dual listings.

According to HLB Mann Judd’s analysis, 35 companies were newly listed on the ASX in 2025, well below the 20-year average of 83 listings. However, it’s worth noting this was an improvement on the 29 listings in 2024 and 32 in 2023.

There are early indications that 2026 could be a stronger year for IPOs, with several high-profile names having signalled an intention to float later in the year on the ASX.

Despite an increase in the number of listings in Australia, total funds raised fell to A$3.2 billion (US$2.3 billion) from A$4.1 billion (US$2.9 billion), representing a decline of 22 percent since 2024. Average funds raised per IPO dropped from A$142 million (US$100 million) to A$92 million (US$65 million) during the same period.

Small-cap listings* dominated the Australian market in 2025, consistent with historical trends during slower IPO periods. The number of small-cap IPOs rose 11 percent compared to 2024, with funds raised increasing from A$166 million (US$117 million) to A$204 million (US$143 million). Average funds raised per small-cap IPO also climbed from A$9 million (US$6 million) to A$10 million (US$7 million).

By comparison, Asian countries, such as Singapore and Vietnam, saw a shift towards larger IPOs during 2025.

While technology companies dominated in other markets, companies in the materials sector were the most prominent in Australia, accounting for 63 percent of all Australian IPOs in 2025 - up from 45 percent in 2024.

However, despite these positive signs, global uncertainty, tariff impacts, and trade tensions continue to weigh on market sentiment, both in Australia and around the world.

Private capital remains abundant, offering businesses an attractive alternative to going public, given lighter disclosure and regulatory requirements. Locally, while reforms by the Australian Securities & Investment Commission (ASIC) aim to simplify the ASX listing process, perceptions of cost and complexity persist.

ASIC’s reforms follow similar measures in the UK, which have simplified the listing process to attract more IPOs on the FTSE.

About IPO Watch Australia

HLB Mann Judd is the group of HLB offices across the Australasian region. The HLB Mann Judd IPO Watch report analyses 2025 Australian IPO activity on a number of key metrics, including listing volumes, share price performance, industry spread, and overall trends, as well as a review of the pipeline for 2026. The analysis relates to all initial public offerings (IPOs) of previously unlisted operating businesses that have resulted in the listing of an entity’s securities on the Australian Securities Exchange (ASX). Therefore, certain listings are excluded from the analysis, including exchange-traded funds, asset management companies, backdoor listings, and secondary listings with no new capital raised.

*The term “small-cap” is used to refer to companies with a market capitalisation of less than A$100 million (US$70 million). All analysis by reference to market capitalisation on listing is based on the price at which new securities were issued.