ASX new listings surge 50pc in 2024 as IPO pipeline strengthens into new year

The Australian sharemarket saw a step-up in activity from the prior year’s lows, with confidence growing in recent months.

The Australian Securities Exchange saw 67 new listings throughout 2024, up from 2023. Picture: Max Mason-Hubers

The Australian Securities Exchange saw a near 50 per cent increase in the number of new companies listed in 2024, as a strong year for equities helped deal-making lift from the prior year’s lows.

Investment bankers – who tend to be optimistic on the outlook for deals – have told The Australian the strengthening IPO pipeline and rising confidence levels amid expectations of interest rate cuts will drive more activity.

In calendar year 2024 there were 67 new entities listed, compared to 45 in 2023. They included the floats of Mexican food chain Guzman y Gomez and HMC Capital’s data centre owner, DigiCo Infrastructure REIT.

However, 2024’s result was still well below the 107 new listings in 2022 and 241 listings in 2021.

Despite new listings, there were 2116 entities on the ASX as a the end of December, fewer than the 2191 a year earlier due to de-listings and takeovers of companies, leading to their removal from the bourse.

ASX listings general manager James Posnett said while Australia had witnessed a quieter new listings environment over the past few years, there had been increasing confidence in the marketplace, with renewed interest and activity in recent months.

“While it is early days, the increased confidence is bringing a more positive outlook for IPOs in 2025, with potential listings from a range of sectors including consumer, industrials, healthcare and technology.

ASX listings general manager James Posnett. Picture: Supplied

“The upcoming Chemist Warehouse listing is positive for new listings and the market generally. It would be the largest ever new listing on ASX by quoted market cap at a current implied valuation of approximately $29bn. The company is expected to commence trading in mid-February, subject to implementation of its merger with Sigma.”

Total net new capital quoted in calendar year 2024 totalled minus $3.3bn, according to the market operator, compared to plus $24.5bn in calendar year 2023.

The marquee float of the year, the DigiCo Infrastructure REIT launched by David Di Pilla’s HMC Capital fell from its $5 issue price to a close of $4.55 on its debut last month, and closed trade at $4.66 on Tuesday.

Guzman’s ASX debut gave the market a boost in June and the company’s shares have traded strongly in the aftermarket, closing at $39.41 on Tuesday, well above its IPO price of $22.

Fewer new listings and a sluggish IPO market reflect a shift in how companies access capital due to rising costs and stricter regulation. Many companies now see private markets as a more efficient and flexible way to raise capital, allowing them to continue growing and innovating without the challenges of an IPO.

The ASX said the average daily number of trades was 1,640,715 in 2024, 17 per cent higher than in calendar year 2023, and the average daily value traded on-market was up by 4 per cent to $5.525bn.

The value of securities held in CHESS was 9 per cent higher than the prior corresponding period at $3101.7bn. The number of dominant settlement messages in December 2024 was 4 per cent higher than 2023.

ASX chief executive officer Helen Lofthouse with Guzman y Gomez co-founder and CEO Steven Marks celebrate GYG listing on the ASX. Picture: Britta Campion

The Australian sharemarket surged in 2024, adding nearly $200bn to the value of the benchmark ASX 200 index despite a December retreat.

The ASX 200 index ended the 2024 calendar year with a 7.5 per cent gain, beating average annual gains of 3.8 per cent in the past decade and 5.6 per cent in the past 20 years.

Returns were, however, lower than on Wall Street, with the tech-heavy Nasdaq and the S&P 500 rallying by more than 20 per cent, while the Dow Jones Industrial Average added 14 per cent.

But, the continued strength of the US market, compared to the Australian market with its narrower focus on the big banks and mining companies, comes as business leaders surveyed by The Australian expect to see the divergence in the business environment increase in 2025 under president Trump.

Emerging Australian technology leaders such as Canva now have a clear path to list in the US instead of on the ASX, to tap into a much larger capital market.

In the last quarter of 2024, the ASX listings team ran and participated in 15 IPO workshops and panel presentations, a higher level of activity than normal and a leading indicator of increased IPO volume to come.

In December 2024, total new capital quoted was $7.2bn, compared to $12.6bn in the previous corresponding period. On a December year-to-date basis, total net new capital quoted was -$9bn compared to + $21.9bn in 2023.

Originally published as ASX new listings surge 50pc in 2024 as IPO pipeline strengthens into new year