Amount of equity capital raising

IBISWorld forecasts the total value of equity capital raisings to rise by 23.4% to $60.6 billion in 2025-26. This follows a dive in the total value of equity capital raised over the previous year. Lower inflation leading to lower interest rates, as well as tax cuts is driving higher economic growth boosting investor confidence. Another factor improving capital raising efforts is the growing interest in building a rare earths supply chain outside of China. This is stimulating resource development and associated capital raisings in Australia. Both the Australian Governments and US Governments are lending money to projects in Australia. This helps give the companies involved the credibility to raise private capital in public markets like the ASX. Record high gold prices are also stimulating mine expansions, which require capital raisings.

Secondary capital is the sale of new equity by a company that has already made an initial public offering (IPO). The value of secondary capital raisings has remained relatively high over the past five years, as smaller technology firms, cross-border listings, materials, and mining firms have continued to seek funding to conduct further exploration or expand their operations. Secondary capital raisings accounted for 64.2% by value in 2024-25. This trend is continuing in the current year. In October 2025, Eagers Automotive announced a $502 million capital raising to fund its $1 billion takeover of Canadian motor vehicle dealer, CanadaOne.

Over the past five years, the overwhelming majority of IPOs have been conducted for mining companies. Companies specialising in fintech have become increasingly popular as private equity firms' investment vehicles over the past five years. This has been because of their disruptive power across the finance sector. The value of investing in fintech companies increased during the pandemic as operations became more digitalised. The value of equity capital raisings has fluctuated significantly over the past five years. On the other hand, economic woes post-pandemic, like high inflation, interest rate rises, geopolitical conflict, etc., have dragged down equity capital, particularly during 2022-23 and 2024-25. Competition from the private capital raising markets has also weakened the value of equity capital raisings on the ASX.

Over the past five years, stints of noteworthy IPO activity have prevented further declines in equity capital raisings. This included the float of Vulcan Steel Ltd, a steel distributing company listed at $930 million in November 2021. Companies that went public in 2021-22 reaped benefits from favourable equity conditions, bolstering their balance sheets amid the pandemic. However, rampant inflation and surging interest rates dampened economic conditions leading to a plunge in capital raising activity in 2022-23. After a bounce back in 2023-24, supported by IPOs like Redux Limited ($402 million) and Guzman Y Gomez Ltd ($335 million), ongoing weak economic conditions drove down equity capital raising activity again in 2024-25. Overall, IBISWorld forecasts the total value of equity capital raisings to fall at a compound annual rate of 7.0% over the five years through 2025-26.