Australia’s ASX Had 133 IPOs in 2016, the NYSE 37. Why is that?

Here is an interesting factoid, recently discovered. The ASX, or Australian Securities Exchange, the country’s primary market for trading securities is killing it in Initial Public Offerings in comparison to many of its global cousins. In fact, when you compare the ASX to some of the largest markets in the world, the Aussies really hold their own. In 2016, the ASX hosted 133 IPOs. Compare this to some other prominent exchanges:

  • Hong Kong – 115
  • Shanghai – 98
  • NASDAQ – 91
  • NYSE – 37

As the ASX explains, they have a globally competitive market for IPOs. Think about it. Australia, a country with a smaller population than Canada at just over 24 million, is trouncing far larger countries on a relative basis. Now the aggregate amount raised for these IPOs shows a difference. IPOs in Australia tend to be smaller in size compared to other locations.

The total raised during 2016 is as follows:

  • ASX – $6 billion
  • TSE – $1 billion
  • LSE – $4 billion
  • NYSE – $13 billion
  • NASDAQ – $10 billion
  • HKEX – $25 billion

So why is the ASX doing so well in the IPO tally? According to the ASX, part of their success has to do with attracting foreign listings from countries like New Zealand, Singapore, Malaysia, Israel and the US. Israel alone represented 10 listings during the FY2017. They also say they have a “sweet spot” for smaller IPOs with a capitalization between $50 to $500 million.

There has been much discussion regarding the moribund US IPO market. Perhaps the Yanks should chat with the Aussies?