Navigating Crosswinds: 
The Australian ECM Review 2025

Momentum in the Australian IPO market continued to build in 2025. The number of IPOs, average market capitalisation and average capital raised by IPO were strongly up on recent yearly averages. There were three $1+ billion listings and a growing number of IPOs with private equity sponsors, both of which have been rare or absent in recent years.

Once again, the metals and mining sector made up more than 50% of the number of IPOs. A significant number of these were companies mining or exploring for gold and copper, reflective of high gold and copper prices.

The number of foreign issuers also increased in 2025, most notably in the metals and mining sector (which added four listings from Canada, one from the US and one from the UK), reflecting ASX’s ongoing appeal for resource‑focused companies seeking capital and enhanced investor visibility.

This momentum was assisted by ASIC’s 'fast‑track' IPO reforms which provided a clearer and faster path from lodgement of the disclosure document to listing for eligible entities. For entities that will have a market capitalisation greater than $100 million upon listing and no ASX‑imposed escrow, ASIC announced it would take no action on accepting applications during the exposure period (a practice which is arguably legal anyway so long as contractual acceptance during that period is avoided) and, importantly, would agree to informally review disclosure documents two weeks prior to lodgement to minimise the risk of extensions to the exposure period and the broader timetable.

Entities that have taken advantage of the ASIC 'fast‑track' process have been able to shorten their timetables meaningfully, which assists in bringing offers to market in volatile conditions.

As was the case in the IPO market, momentum continued to build in Australian secondary equity capital markets in 2025, with the number of transactions and total capital raised increasing to 285 transactions with approximately $24 billion raised.

In particular, on the back of rising prices across a range of commodities (including gold, silver, tin, copper, platinum and cobalt), capital raisings in the metals and mining sector made up more than 50% of secondary capital raisings. This included significant raisings from Lynas Rare Earths Limited, NexGen Energy Limited, Arafura Rare Earths Ltd and Liontown Limited, reflecting a continued strong market for critical minerals and rare earths projects.

Raisings to fund M&A fell to 9% of capital raisings in 2025, with the single biggest reason for raising being growth or expansion.

Consistent with themes in recent years, placements continued to dominate the ECM landscape and capital raisings of between $10 and $50 million were the most common offer size. Discounts reflected rising share prices across the ASX (particularly in small and mid‑caps), with an average discount of 11.63% in 2025 (as compared to 14.66% in 2024).

In February 2025, ASIC released a Discussion Paper which directed significant attention to Australia’s equity capital markets. The Discussion Paper was released in conjunction with an economic research report which analysed public equity and private markets and the dynamics between them, posing questions for discussion. ASIC received almost 100 submissions responding to these questions, including from ourselves, and in June 2025 announced the ‘fast‑track’ process for eligible IPOs discussed above. In November 2025, ASIC also released a capital markets roadmap for the next 12–18 months. This roadmap outlined ASIC’s intended focus for public market regulation, including considering lowering thresholds for dual listings, lowering the free float requirement and reviewing IPO publicity restrictions.

ASIC’s efforts to encourage IPOs were appreciated, although at the same time ASX amended its Guidance Note 1 to reduce the number of entities eligible for its own ‘fast‑track’ process. Guidance Note 1 has also been amended to provide a list of positive and negative factors that ASX will take into account for early-stage technology companies in assessing whether the entity has developed to a point where listing is appropriate.

Early indicators entering 2026 pointed to an encouraging IPO environment, with market commentary suggesting that clients were showing greater preparedness to undertake IPOs in the coming year. This optimism was underpinned by a growing pipeline of IPO candidates and improved regulatory settings, including ASIC’s fast‑track IPO reforms.

However, heightened geopolitical uncertainty, particularly the escalation of conflict in the Middle East, has more recently weighed on market confidence as oil prices, inflation and interest rates have created significant uncertainty. As a result, our sense is that the majority of IPO candidates are taking a more cautious approach to launching early‑year processes, with activity increasingly expected to concentrate in the second half of 2026 as greater macro‑economic clarity emerges. Notwithstanding near‑term volatility, we expect ASIC’s fast‑track IPO reforms to act as a meaningful tailwind for the Australian IPO market in 2026.

While private capital will continue to pursue private exits or sell to strategic acquirers, an improvement in IPO conditions should increase the likelihood that mature private capital‑held assets will again feed the public market pipeline, so long as global markets hold up under current political stresses.

We also expect to see a strengthening in secondary market activity in 2026, assuming current global tensions do not lead to a major market correction.