Arm Holdings (NASDAQ:ARM)' robust initial public offering (IPO) on Nasdaq could provide a much-needed boost to the ASX, which has seen a notable dip in listings this year.
There are hopes that the successful debut of chip designer Arm on the Nasdaq might encourage more ASX aspirants to speed up their listing plans.
The ASX has seen a notable dip in listings this year, with just 14 new listings in the first half of 2023, compared to 59 in the same period last year, according to HLB Mann Judd.
Marcus Ohm, a partner at HLB Mann Judd, said 2023 could be one of the quietest years for IPOs in Australia since the mid-2000s.
However, Steven Wang, equity capital markets specialist and partner at MinterEllison, thinks the Australian spring has brought some "green shoots" to domestic IPO offerings.
“In 2022, a lot of ASX companies went out and shored up their balance sheets because they weren’t sure where things were going to go. So, at the start of 2023 the market was largely tapped out,” he said.
“But in the last few months, we’ve been seeing a lot more inquiries from clients. Not all of these inquiries will eventuate in an IPO or raising but even if a third of those eventuate then things are looking a lot better.”
More vibrant IPO scene ahead?
Arm's debut on Nasdaq saw a 25% one-day rally, raising US$4.87 billion ($7.6 billion), and prompting renewed interest in IPO markets globally.
Daniel Scotti, partner and co-head of equity capital markets at MinterEllison, suggested that Arm's positive performance could eventually translate into a more vibrant IPO scene in Australia.
"That could be a harbinger of better things in the US, which in time could translate over here in Australia," Scotti stated.
This optimism emerges against a backdrop of global market scrutiny but it may serve as a catalyst for rejuvenating the Australian IPO landscape.