The latest HLB Mann Judd “IPO Watch Report” has indicated while initial public offering (IPO) activity on the Australian Securities Exchange (ASX) remained subdued throughout 2025, there are encouraging signs of a potential market uplift in 2026.
The analysis showed 35 companies listed on the ASX in 2025, representing an improvement on the 29 listings in 2024 and 32 in 2023. However, it remains well below the 20-year average of 83 listings.
HLB Mann Judd Sydney partner and report author Simon James noted the market began to show early signs of movement during the year despite the low number of company listings. To this end, he suggested 2026 could see stronger activity than recent periods even though there are few potential listings in the immediate future.
“The pipeline remains soft, with just four ASX listings announced so far, but several high-profile names have signalled an intention to float later in the year,” James indicated.
With regard to market segments, small-cap companies dominated IPO activity in 2025, rising 11 per cent compared to the previous year. This continued the historic trend seen in recent years.
When looking at industrial sectors, materials accounted for 63 per cent of all IPOs, driven by funding needs for exploration projects and supported by strong commodity prices for gold, copper and iron ore.
While listing numbers rose, total capital raised fell by 22 per cent to $3.2 billion over the 12-month period. Again, materials was the dominant sector, accounting for $999 million, followed by property ($750 million) and transportation ($685 million).
James explained abundant private capital continues to offer businesses an attractive alternative to public listing due to lighter disclosure requirements.
“While ASIC (Australian Securities and Investments Commission) reforms aim to simplify the ASX listing process, perceptions of cost and complexity persist,” he argued.
Although the funds raised decreased, new listings delivered an average one-day gain of 15 per cent and an average year-end gain of 23 per cent, outperforming the ASX All Ordinaries Index, which delivered a return of 7 seven per cent for 2025.
Out of the 35 new listings, 26 produced a first-day gain, however, only 12 remained above issue price at the end of the year.
“Despite prolonged softness, we remain positive about the outlook in 2026. IPO activity will not stay subdued indefinitely and leading businesses will not remain private forever,” James noted.