The latest ASX Group Monthly Activity Report for February 2024 shows a trend where the number of companies delisting from the Australian Securities Exchange (ASX) outpaces new market entries.
According to the report, the total number of companies listed on the ASX fell from 2,289 in February 2023 to 2,183 in February 2024, marking a near 1% decline with 106 fewer companies. The data further revealed that 110 companies have exited the ASX in this financial year up to the end of February, an increase from 75 companies during the same period the previous year. Concurrently, new listings have decreased by 20%, from 47 to 38 entities admitted to the Exchange compared to last year.
Martin Donnelly, managing director of client relations at EQT Capital Raising, commented on the findings, linking them to a wider global trend towards privatisation.
"Australian investors are strategically pivoting towards private markets in pursuit of diversification and higher returns. With the public markets contracting, private assets offer fresh opportunities for building resilient portfolios and tapping into substantial value creation beyond the public sphere," Donnelly said.
Data Sources
ASX Group Monthly Activity Report – February 2024