Take a look at performance of ASX IPOs in the past decade - Kalkine Media

August 31, 2022 10:46 AM AEST | By Farzan Moharkan
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Highlights

  • Australian share market IPOs have significantly increased over the past ten years.
  • The Australian stock exchange generated its all-time high revenue in 2022.
  • 2020 witnessed a major fall in the number of new listings across the period.

Initial public offering (IPO) refers to the process of offering a private company's shares to the public for the first time in the form of a new share offering. 

IPOs offer companies the chance to raise money by offering shares in the primary market. Companies hire investment banks to market, measure demand, set prices and dates for IPOs, and much more.

Australian share market IPOs have significantly increased over the past ten years, with a huge rise from a new and secondary capital of nearly $51 billion in 2012 financial year to raising $255 billion in new and secondary capital in 2022 financial year.

According to an ASX press release, in 2022, ASX saw decade-high levels of listings activity, mostly in the first half of the quarter, with a total of 217 new listings during the 2022 financial year, which is the highest number since 2008 financial year.

ASX’s Markets business benefited from higher equity trading activity and demand for commodities products. However, this was partly offset by the impact of the lower interest rate environment on futures volumes.

While talking about capital raised through IPOs, ASX set a new record overall by raising nearly $159 billion, excluding the BHP capital unification. This indicated a 56% increase in the total amount of capital raised.

In 2017, ASX witnessed a huge number of listings compared to other years, with 152 companies. Even though there was a high number of listings, revenue from listings was flat year on year. The total amount of capital raised through listing was 28% lower to $56 billion.

Integrated building services Johns Lyng Group, financial services company Netwealth Group, investment company WAM Global, and many such companies were listed on ASX during the last ten years.

The year 2020 witnessed a major fall in the number of new listings as only 83 new listings occurred in that year. According to Statista, the number of companies listed on the Australian Securities Exchange has been very constant in recent years.

From 1973 domestic companies and 126 international companies in January 2017, these figures changed little to 1997 domestic and 161 international companies in June 2022. During this period, the total market capitalisation of domestic companies in the ASX increased from AU$1.75 trillion to AU$2.31 trillion.

Over the years, revenue generated by ASX has been growing steadily. ASX generated its all-time high revenue in 2022. ASX reported revenue growth of 7.5%, to $1.02 billion last financial year. While as its all-time low revenue generated in the past ten years was in 2012. ASX reported operating revenue of about $610 million, down 1.2% in 2012.


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