Backlog of IPOs to flow through in second half of 2026: HSF Kramer report

With geopolitical uncertainty curtailing the number of early IPOs markets were expecting at the start of the year, a new report from Herbert Smith Freehills Kramer (HSF Kramer) predicts the second half of 2026 will be a busy one for Australian markets thanks to a backlog of both investor demand and supply from companies interested in an IPO.

With 2025 seeing several big-ticket ASX listings, including GemLife, Virgin Australia, and Greatland Resources, 2026 kicked off with renewed positivity around IPOs that HSF Kramer expects will resurface in the second half assuming greater macro-economic clarity emerges. 

Philippa Stone, partner and head of capital markets at HSF Kramer, said the team’s discussions with participants in the IPO market indicate a greater level of confidence in the IPO market pipeline and the companies that are 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,” Stone said. 

ASIC’s fast track process, which was introduced in June 2025 to provide a clearer and faster path from lodgement of disclosure documents to listing for eligible entities, is expected to provide a boost to IPO candidates navigating volatile market conditions.

The key benefit to the process, which was first used by GemLife in an IPO process guided by HSF Kramer, is shortening the period during which investors are ‘on risk’ before securities can be traded on market – particularly important in periods of market volatility.

2025 momentum to flow through to 2026

According to the report – Navigating Crosswinds: The Australian ECM Review 2025 – which analyses ASX activity through 2025 and the key trends, themes, and predictions that will shape Australia's equity capital markets in the year ahead, momentum in the local IPO market continued to build in 2025.

There were 40 IPOs in 2025, up from 32 in 2023 and 26 in 2024, with the amount of capital raised per IPO more than doubling from $43.9 million in 2024 to almost $116.7 million in 2025. 

Nicole Pedler, partner at HSF Kramer said, “While the total number of IPOs is still below pre-2022 averages, we expect the positive momentum to continue given the large numbers of prospective candidates who delayed listing through 2023, 2024 and 2025.”

Though private and venture capital will remain the strongest alternative to public markets, these areas are also expected to feed the public market pipeline.

Michael Ziegelaar, partner at HSF Kramer, said, “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.”

HSF Kramer partner Tim McEwen said technology, biotech, and AI-based firms are likely to be the most active sectors for IPOs this year, with continued issuances in the metals and mining, healthcare, life sciences, and pharmaceuticals sectors also expected.

“Across sectors, issuers with defensible earnings, structural growth drivers, 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.”

Secondary raises

Australia’s secondary equity capital markets proved strong in 2025, with 285 transactions raising approximately $24 billion, up from 225 transactions raising $20.6 billion in 2024.

Despite the increase in transactions, the proportion undertaken for M&A purposes decreased significantly in 2025, down from 23.8% in 2024 to 9.8%. Meanwhile, the number of transactions to accelerate growth almost doubled over the same period, from 35.56% to 60.7%.

Alex Mackinnon, partner at HSF Kramer, said, “2025 was another strong year for secondary capital raising activity, with increased volumes, value and continuing tight discounts. 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.”

Resources sector remains a cornerstone

The resources sector, again dominated Australia’s IPO and secondary raisings markets in 2025, underlining the ASX’s position as a leading global market for resources capital.

23 of the 40 IPOs successfully completed in 2025 were resources companies, with most being exploration companies. Meanwhile, 66% of the secondary raisings were undertaken by resources companies.

Paul Branston, partner at HSF Kramer, said this level of activity is expected to continue in 2026 given the capital-intensive nature of the resources industry.

“Prices for gold and silver remain strong by historic standards and the geopolitical factors that have driven the price increases over the last two years look set to continue. We therefore expect issuers with gold and silver-focused projects, both explorers and developers, are likely to remain active capital raisers,” he said.

Copper projects are also expected to continue to attract capital while prices remain strong, while the rebound in lithium prices will support raisings by companies with lithium projects.

Branston added, “More broadly, we expect that supply deficits in strategic and critical minerals, the focus on defence and energy and supply-chain security and governments’ increased involvement in the demand for and production of those commodities will result in the development of more strategic and critical minerals projects, with issuers undertaking raisings to fund the equity component of the funding for those projects.”

Regulatory reform 

ASIC focused its attention on Australia’s public markets in 2025, spending the year in consultation with industry before releasing its Roadmap for public and private markets in November.

In it, the regulator acknowledged the fundamental importance of public markets to the Australian economy and outlined several measures and areas of potential reform aimed at making public markets more attractive. 

However, HSF Kramer partner Philip Hart said there is a “natural limit” to what ASIC will be able to achieve, given the initiatives likely to have the most significant impact will require legislative amendment or action from market operators.

“Where possible, we’re hopeful that ASIC will use its influence to encourage lawmakers, market operators, and other regulators to follow its lead,” he said.

“Nevertheless, we regard the Roadmap, and the industry engagement process that preceded it, as a step in the right direction.”

You can read the Australian ECM Review 2025 here.