Market conditions remain steady with low volatility, and increased daily trading values indicate a cautious yet optimistic environment for IPOs and market growth.

Globally, IPO activity in the first half of 2025 increased to 539 offerings raising $61 billion, with a record number of cross-border listings, especially from foreign issuers, which benefits Australia's market outlook.

The Australian Securities Exchange (ASX) is experiencing a notable revival in IPO activity in 2025, after hitting a two-decade low in 2024, signaling increased investor confidence and a more risk-tolerant environment.

In June 2025, the market saw approximately $7.36 billion in new listings and $3.38 billion from capital raises, with positive net capital flow indicating growing confidence among investors.

Recent successful IPOs like Virgin Australia and GemLife demonstrate that investors are willing to fund credible, well-priced offerings, with Virgin Australia's IPO raising $685 million and GemLife closing about 4% above its issue price on debut.

GemLife's IPO, the largest domestic listing of 2025, showcased stable pricing and strong investor support, further reinforcing the market's cautious optimism.

By mid-2025, IPO activity surged, especially in June and July, with larger, well-structured offerings such as Virgin Australia's re-listing and GemLife's debut, indicating a more active and disciplined IPO environment.

While still not reaching 2021 levels, the market is regaining strength, with more disciplined deal structuring and a gradual return of retail investors, reflecting a cautious but improving sentiment.

The pipeline of upcoming ASX listings has revived, with about a dozen companies queued for floats in late September and October, including DPM Metals and Ryman Healthcare, signaling renewed sponsor confidence.

Market watchers are advised to monitor early trading volumes and book-building dynamics, as these will be key indicators of the sustainability of the current positive momentum.

Indicators such as steady daily trading values around $7.1–7.2 billion and a low VIX suggest a cautious but steady market environment, with increased trading activity supporting the IPO resurgence.

Small-cap stocks on the ASX outperformed other sectors by over 8% in the past year, driven by attractive valuations and increased investor interest, marking a significant recovery after nearly five years.