Powered by
MOMENTUM
MEDIA
The second half of 2026 could see an increase in IPOs due to a backlog of investor demand and supply from interested companies, according to Herbert Smith Freehills Kramer.
Activity in Australia’s IPO market is expected to accelerate in the second half of this year, despite the majority of IPO candidates currently taking a cautious approach due to geopolitical uncertainty, the latest ECM Review by Herbert Smith Freehills Kramer (HSF Kramer) has outlined.
According to the report, Navigating Crosswinds: The Australian ECM Review 2025, last year saw 40 IPOs, eight more than in 2023 and 14 more than in 2024. The amount of capital raised per IPO almost doubled from 2024–25, reaching almost $116.7 million.
Partner at HSF Kramer, Nicole Pedler, said while the total number of IPOs is still below pre-2022 averages, the firm expected the positive momentum to continue given the large numbers of prospective candidates who delayed listing through 2023, 2024, and 2025.
Partner and head of capital markets, Philippa Stone, also indicated a greater degree of confidence in the IPO market pipeline and the companies filling it.
“Despite current market conditions, we’re seeing a greater preparedness, both from founders and private capital owners of IPO candidates, to undertake a listing this year rather than simply defaulting to a private market solution or a continuation of the status quo,” she said.
An additional boost is expected from ASIC’s fast-track pathway, introduced in June 2025 to shorten the process from lodgement of disclosure documents to listing. This is especially beneficial in times of market volatility, HSF Kramer explained, as it means a shorter period in which investors are “on risk” before securities can be traded on market.
The most active sectors for IPOs, partner Tim McEwen identified, were technology, biotech, and AI-based firms, with continued issuances in the metals and mining, healthcare, life sciences, and pharmaceuticals sectors also likely. In fact, more than half of the successfully completed IPOs in 2025 were resources companies, as were 66 per cent of the secondary raisings.
“Across sectors, issuers with defensible earnings, structural growth driver, or lower sensitivity to global macro-economic and political volatility are likely to be best placed to access capital, particularly if uncertainty continues to influence global equity market sentiment,” according to McEwen.
Paul Branston, also partner at HSF Kramer, said the level of activity in the resources sector specifically is expected to grow, given the capital-intensive nature of the resources industry.
In the same vein, private capital is expected to feed the public market pipeline.
According to HSF Kramer partner Michael Ziegelaar, the lower volume of IPOs over the last few years has left a backlog of companies held beyond their intended cycle, creating pressure for private capital to seek liquidity.
“Private equity firms are also considering public market valuations in a new light, recognising the emerging trend that pricing outcomes are diverging between public and private markets depending on the asset and sector,” Ziegelaar said.
Over last year, Australia’s secondary equity capital markets showed strong results, with 285 transactions occurring, 60 more than in 2024, and raising $3.4 billion more. Interestingly, transactions undertaken for M&A purposes decreased 14 per cent last year, while transactions to accelerate growth nearly doubled to more than 60 per cent.
Partner at HSF Kramer, Alex Mackinnon, highlighted that 2025 saw “increased volumes, value and continuing tight discounts”.
He continued: “There was less focus on raising for M&A and it appears the market was more comfortable in 2025 supporting companies with cash for a range of purposes than it had been in prior years.”
Having spent 2025 in consultation with industry and releasing its roadmap for public and private markets at the end of last year, ASIC acknowledged the importance of the public markets to the economy, recommending several areas of potential reform to make the markets more attractive.
According to HSF Kramer partner Philip Hart, however, there is a “natural limit” to what ASIC will be able to achieve due to the likely need for legislative amendment or action from market operators.
He said: “Where possible, we’re hopeful that ASIC will use its influence to encourage lawmakers, market operators, and other regulators to follow its lead.
“Nevertheless, we regard the Roadmap, and the industry engagement process that preceded it, as a step in the right direction.”
Amelia is a Professional Services Journalist with Momentum Media, covering Lawyers Weekly, HR Leader, Accountants Daily and Accounting Times. She has a background in technical copy and arts and culture journalism, and enjoys screenwriting in her spare time.
