To explore 2025’s initial public offerings (IPO) and equity capital market prospects, The Australian recently convened a roundtable with key executives from Macquarie Capital, UBS and Barrenjoey.
The discussion focused on an end to Australia’s prolonged drought in initial public offerings, amid expectations of interest rate cuts and resilient valuations on the ASX.
In 2024, total Australian IPO transactions surged fourfold to US$2 billion (A$3.2 billion) from the previous year’s subdued levels. However, the volume remained below the 10-year annual average of almost US$3.7 billion, according to data from the London Stock Exchange Group (LON:LSEG) (formerly Refinitiv).
Improving pipeline
Notably, 2024 marked the busiest IPO year since 2021, buoyed by high-profile floats such as Mexican food chain Guzman y Gomez and HMC Capital’s DigiCo Infrastructure REIT.
While a flurry of IPOs in late 2024 offered a glimmer of revival, the market was dominated by the much-anticipated DigiCo listing. Despite this, investment bankers noted an improving pipeline and growing confidence as 2025 begins.
Ben Griffiths, executive chairman of Eley Griffiths Group, emphasised the importance of successful IPOs in bolstering investor sentiment. “Nothing succeeds like success in the business of primary raisings,” he said, noting the mixed fortunes of 2024 listings.
The Guzman IPO boosted market sentiment in June, with shares closing at A$40.57 on Tuesday, far above the A$22 offer price. However, other IPOs struggled. Bhagwan Marine traded at 63 cents, in line with its listing price, while Cuscal and Symal Group were below their debut valuations.
DigiCo, the largest 2024 IPO, closed at A$4.45, down from its A$5 issue price.