In August this year, I wrote about the ASX’s IPO drought through 2023.
At the time I wrote that article, there were only three companies set to list that month.
Now in December, revisiting the question, I’m seeing a repeat pattern – as of December 19, there are only three companies set to list in January of 2024.
The Australian Securities Exchange’s David Park confirmed to The Market Herald the following figures for 2023:
- Only 44 companies listed on the bourse
- Initial capital raised of only $1.1 billion
- Quoted market cap of new listings is $33 billion
What’s more, the pool of companies set to list in early 2024 is already smaller than it was looking only weeks ago.
One company that was intending to list early next year, XLR8 Metals, has withdrawn its application for now.
Commodity prices matter for ASX IPOs
Bear with me on a tangent here, because it’s relevant – particularly so for the Australian stock market.
XLR8 was going to be a nickel miner, but with nickel prices down nearly 40 per cent over the last year, it’s not hard to see why they might wait for a better environment.