Shrinking ASX won't expand in 2024 as IPO hopefuls sit on the sidelines
Last year was the first in more than a decade where total IPO amounts raised fell below $1 billion. And the number of IPOs notched up hasn't been this low in about 20 years.
The sombre market for IPOs on the ASX is set to persist in 2024, with macroeconomic uncertainty and the poor performance of last year's debutants set to keep aspiring new listings on the sidelines.
That's the view of advisory firm HLB Mann Judd, which this week released its annual review of the IPO market. While the ASX itself is pinning its hopes on an IPO revival this year, and there's speculation of potential big ticket listings from Bain Capital-owned airline Virgin Australia and TDM-backed fast food retailer Guzman y Gomez, there are also plenty of factors dampening the outlook.
The paltry $847 million raised on the ASX last year was half owed to chemicals company Redox's $400 million IPO in July. It was a bad year for the shrinking local bourse as listing volumes dropped by 21% on the year prior, and a string of companies left the exchange in private equity buyouts. It was also the first year since 2012 where total amounts raised fell below $1 billion, according to the accounting and advisory firm's analysis.
In fact, HLB Mann Judd has not seen IPO numbers this low since it began publishing its report 20 years ago.
