Australia’s IPO market is showing early recovery signs with 2026 tipped to bring stronger listings activity.
Initial public offering (IPO) activity remained subdued in 2025, but HLB Mann Judd’s IPO Watch Report has shown encouraging signs of recovery as the year progressed, pointing to a potential uplift in 2026.
The IPO market has recorded historically low numbers of listings over the past three years amid ongoing economic and geopolitical uncertainty with many businesses delaying public listings in favour of private ownership.
In 2025, 35 companies listed on the ASX, below the 20-year average of 83 listings, but above the 29 listings in 2024 and 32 in 2023.
Last June, ASIC announced that entities listing on the ASX via the fast-track process now have access to a shorter IPO timetable designed to reduce deal execution risk as part of a two-year trial. ASIC will now informally review eligible offer documents two weeks prior to public lodgement, which could reduce the IPO timetable by up to a week.
Simon James, partner at HLB Mann Judd Sydney and author of the report, said the market has begun to show early signs of recovery.
“There are early indications that 2026 could be stronger than recent years,” James said. “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.”
Despite the increase in listings, total funds raised declined 22 per cent to $3.2 billion, while average funds raised per IPO fell from $142 million to $92 million.
James said global uncertainty, tariff impacts and trade tensions continued to weigh on market sentiment.
“Private capital remains abundant, offering businesses an attractive alternative to listing given lighter disclosure and regulatory requirements. While ASIC reforms aim to simplify the ASX listing process, perceptions of cost and complexity persist.”
Small-cap listings dominated in 2025, with the number of small cap IPOs rising 11 per cent compared with 2024 and funds raised increasing from $166 million to $204 million. Average funds raised per small cap IPO climbed from $9 million to $10 million.
Materials was the standout sector, accounting for 63 per cent of all IPOs, up from 45 per cent in 2024, with capital raised of $999 million, followed by real estate ($750 million) and transportation ($685 million).
New listings delivered an average first-day gain of 15 per cent and an average year-end gain of 23 per cent, outperforming the ASX All Ordinaries Index, which rose 7 per cent. Of the 35 new listings, 26 recorded a first-day gain, although only 12 remained above issue price at year-end.
“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 said.
Last week, Pengana Capital Group chief executive, Russel Pillemer, told InvestorDaily that it is investing in OpenAI and SpaceX as pre-IPO opportunities on the expectation of them both listing soon.
“We still think that there’s a very large upside in the not too distant future. It appears that an IPO is possible later on this year, and usually between the pre-IPO and the IPO valuations is a significant uplift.”
