The number of companies going public in Australia has limped along in 2024: at one point, the value of new equity in the ASX reportedly reached its lowest level since 2012.

Tough competition from private capital (for example, Blackstone’s recent $24 billion takeover of former IPO candidate AirTrunk) and Australia’s uncertain economic outlook have acted as the metaphorical iceberg for companies wanting to float.

The lacklustre IPO environment has been handbraked further with ASX aspirants facing extensive red tape, making an already lengthy process even longer.

But it looks like the Australian market is on the cusp of an IPO resurgence, highlighted by the recent performance of wool products manufacturer and distributer Merino & Co (ASX:MNC), which rang the bell on 30 October 2024.

This company’s successful IPO and concurrent listing clearly hit the right note with investors: just three days after trading commenced, it was forced to issue a statement to the ASX explaining its massive share price spike of more than 500% was due to positive media coverage post-listing.

Mexican fast food chain Guzman y Gomez also fed investor appetite during its IPO process and proceeding grand entrance on the ASX in June. The Company’s shares leapt by more than one-third on their first day of trading and now boasts a market cap of $4 billion.

Coming out of the IPO gates strong has been Golden Horse Minerals, which decided to close the book early last week: boasting an oversubscribed offer and successful raise of $18 million.

This capital current is expected to continue for the flurry of quality listings across a range of industries by the end of the year, including construction equipment hire company Cuscal, cosmetic and laser clinic organisation Stormeur, and payments infrastructure business Cuscal.

There are a few small-cap explorers looking like market contenders, including Everlast Minerals, Mount Hope Mining and Burrendong Minerals, which are all due to hit the boards by Christmas.

Then there is the big end of town: alternative asset manager HMC Capital is planning to float a $4 billion data centre investment trust before the end of the year.

This will reportedly be the largest raising for a new Australian company since petrol station owner Viva Energy listed on the ASX in 2018 for $2.65 billion.

There are also international contenders such as Robert Friedland’s Ivanhoe Atlantic planning a listing in mid-2025 and LSE performer Greatland Gold reportedly looking to make an entry to the Australian market following its acquisition of Telfer and Havieron from Newmont Gold.

All eyes will be on those due to list over the next five weeks though, with the results providing a barometer read on how the IPO market will fare for 2025.

Initial forecasts from analysts and fund managers are predicting a strong surge in IPO activity, buoyed by Donald Trump’s victory in the US Election and impending interest rate cuts here in Australia and other major economies around the world.

After what has been a sinking ship of a year for IPOs, it’s safe to say the capital tide is turning.