$4.3 billion in capital was raised via the ASX in December, up slightly on November as the 2022 calendar year came to a close.
Six months of the way through the 2023 financial year, $32.2 billion in total capital has been raised via the ASX, down nearly two-thirds on the $90.3 raised at the same point in 2021.
And only $2 billion of that, down 93% year-on-year, has come via primary capital markets, such as IPOs, reflecting a very slow year worldwide for new listings.
December stats
$829 million in initial capital was raised for the month of December, down 73% year-on-year.
Capital raised via secondary markets, such as when a company approaches existing and potential investors to ask for additional capital in either equity or debt, was $3.5 billion for the month, down 84% year-on-year.
That meant just $4.3 billion was raised for the month of December as a whole, more than in November but still down 82% year-on-year.
Eight new companies joined the bourse, offset by nine companies being delisted.
Just 40 companies have successfully made it onto the ASX in the past six months, compared with 150 in the first half of the 2022 financial year.
December saw an average of 1.3 million trades per day, down 17% year-on-year.
The total cash market value for December was $122.1 billion, down 12% year-on-year.
It was a sunnier picture on the futures market with about 12.5 million contracts trading hands, up 2%.
The notional value of OTC interest rate derivative contracts centrally cleared was $282.479 billion, up on last year’s $184.8 billion.
Single stock options (average daily contracts) traded were up 5%, while index options (average daily contracts) traded were up 17%.
Cause for optimism
Despite another slow month, experts say things should begin to turn around in the coming months.
“There’s no doubt it’s not been the best year for IPOs, but the conversations we’re having with a number of companies that are in the pipeline suggests we’re going to get some really meaningful interest next year, particularly around the middle of the year,” James Posnett, GM of Listings at the ASX, told Proactive.
Big four consultancy EY agrees, with global IPO leader Paul Go writing that “there is a strong IPO pipeline on the horizon”.
“Even though IPO activity will likely remain sombre through at least the first quarter, more favourable conditions seem to be set in place for global IPO activity to regain greater momentum by the second half of the year.”
- Daniel Paproth