Australia's IPO market in 2024 saw its lowest activity in two decades with only 29 listings, according to HLB Mann Judd's latest 2024 IPO Watch Australia Report, marking a 9 per cent decline on the 32 listings in 2023.
At the same time, it also experienced a considerable increase in funds raised compared to 2023. Total funds raised surged 387 per cent to $4.1 billion, compared to $847 million in 2023.
Marcus Ohm, corporate & audit services partner at HLB Mann Judd Perth and co-author of the research, says the poor listing volumes reflect another challenging year for the IPO market, with significant macro and political factors globally.
“The 29 listings in 2024 were the lowest number of listings since our first report in 2004, and so far there is little sign of numbers improving in the first half of 2025.
“However, in more positive news for the market, there were 11 large cap listings in 2024 compared to seven in 2023. These large caps contributed 96 per cent of the total funds raised, with three listings with market caps in excess of $1 billion who collectively raised $2.7 billion," Mr Ohm says.
The largest IPO of 2024 was DigiCo Infrastructure REIT (ASX: DGT), which raised $1.995 billion in December and was the first IPO to surpass the $1 billion mark since 2021. The second largest raising of the year was Cuscal Limited (ASX: CCL), which raised $336.8 million.
The Materials sector continued to dominate the IPO market, accounting for 13 listings which represents 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.
Mr Ohm says the decline in the number of Materials companies listing is largely due to unfavourable conditions for battery metals.
“Conditions for junior exploration companies have been unfavourable particularly through the second half of 2024. Only just over half the companies in this sector achieved their target subscription.”
Overall, ten industry sectors were represented with new listings in 2024, an increase from 2023 when only seven sectors were represented. Notably, the Software & Services sector did not record any new listings for the first time since 2010, underscoring ongoing challenges in the technology space.
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.
Mr Ohm says the overall trend suggests that while the IPO market continues to be historically subdued, there are some positive signals in the amounts raised in 2024, and the year end gains achieved.
“Nonetheless there continues to be a high degree of uncertainty, including an upcoming federal election, 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 initial public offering pipeline for early 2025 limited to only three small cap listings.
