We'll all be rooned," said Hanrahan, "before the year is out." The W gloom merchant from John O'Brien's outback ballad was referring to the weather, but he could just have easily been lamenting the state of new company listings on the Australian Securities Exchange (ASX).
The market for initial public offerings (IPOS) has been "keepin' dry" for the past 18 months. High inflation, rising interest rates and geopolitical calamity have seen to that. Business likes certainty and times have been anything but.
However, there's cause for optimism, with some market experts expecting an IPO pickup in 2024. "We are emerging from the bottom of the cycle in what is traditionally a cyclical market," says Blair Beaton, group executive for listings at the ASX. "We are starting to see greater certainty on inflation and, therefore, interest rates. These factors, plus a sustained period of low volatility, will help the IPO market reopen." There are dangers, however. "Increased geopolitical risk will likely lead to an uptick in volatility. But it remains to be seen how this will play out with IPO processes," says Beaton.
The improved outlook - or "signs of life" - are welcome. New listings are regarded as a barometer for the health of the market overall.
"The IPO market has been very difficult so far in 2023 with only 30 companies successfully listing over the calendar year to the end of October," says Marcus Ohm, partner at HLB Mann Judd Perth, who reports on the annual state of play for IPOS. Most were small-cap resources listings based in Western Australia.
"To provide context, this is against the backdrop of a record year in 2021 [when there were more than 200] and reflects the difficult environment for IPOs that first emerged towards the end of 2022," says Ohm.
According to ASX numbers, 2023 will be only the third year since 2010 when the number of new listings has dipped below 100. The others were 2019 and 2012.
Denne historien er fra December/January 2023-utgaven av Money Magazine Australia.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra December/January 2023-utgaven av Money Magazine Australia.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
An outrageous, beautiful monopoly
Telstra's mobile business is a cash machine with few competitors, giving it the highest returns in the world.
Drop the anchor to judge value
Buying and selling decisions should be based on where a stock price is going, not where it has been.
Powering the AI boom
Beyond the software and chipmakers, where will the energy come from?
Get into life
Tucked inside super are products that can protect you from life's inevitable uncertainties.
Paths to home ownership
Taking the road less travelled can sometimes deliver unexpected benefits.
Sold! Quick ways to add value
Small, strategic changes can have a big impact on the look and feel of your home. And get you a better price on auction day.
Money lessons the kids need to know
Your children can learn a lot from your past money mishaps. Here are eight financial conversations I have had with mine.
Property-investing rules: are they likely to change?
The pressure for the government to curb the tax benefits of tax concessions, such as negative gearing and the capital gains tax discount, is unrelenting. Most recently, independent senators David Pocock and Jacqui Lambie proposed five options for paring back investment property tax concessions, with savings to the Federal budget of up to $60 billion over the next decade.
What's love got to do with it?
A rollercoaster of emotions could be driving poor crypto behaviour.
Are we ready to be cash-free?
Saying goodbye to our piggy banks too soon could leave small businesses in the dark when problems arise.
