Australian IPO market slows to lowest since financial crisis

Wed, 09/25/2024

by Ellie LeTu

Source: Financial Times

• Struggling IPO Market

  • 12 IPOs have raised just 371 mm, lowest since 2009.

  • Only one significant IPO of note: burrito chain Guzman y Gomez.

    • Raised $335 mm at $2.2B valuation in June.

• Causes: private capital and uncertain economy

  • Competition from Private Capital.

    • Blackstone recently completed a $16B takeover of IPO candidate Airtrunk.

    • Venture capital, infrastructure and pension funds threaten to take away potential IPO candidates as well.

  • Uncertain Aussie economic outlook.

    • Faltering growth and persistent inflation weigh on the economy.

• Potential Future IPOs

  • In consideration for IPO: Cuscal (payments company), and Virgin Australia (airline).

  • Burrito chain Guzman y Gomez success could encourage more IPOs in the future.

  • Despite the IPO slowdown, Australia’s stock market is thriving: the ASX index hit record highs this past week.