The law firm Ashurst anticipates a revitalized initial public offering (IPO) market in 2026, driven by a robust pipeline of deals and a resurgence in global IPO activity. According to Patricia Paton, an Ashurst partner and capital markets expert, the United States serves as a critical indicator for IPO momentum. The firm highlighted a strong start to the US financial year, with 60 IPOs raising a combined $14.6 billion (approximately $22.6 billion), marking the largest quarter for IPO activity since 2021.
Paton expressed optimism that this trend will influence the Australian Securities Exchange (ASX), stating, “It’s very busy at the ASX … they’ve not been busy for a while, so good to see them under pressure to get deals up on the board.” She noted that several factors are aligning to rejuvenate the IPO market, including regulatory initiatives aimed at boosting company confidence in listing.
Factors Boosting IPO Confidence
Paton pointed out that regulators and policymakers are actively working to create an environment conducive to IPOs. This includes efforts to expedite listing timelines, which could significantly benefit companies considering going public. Furthermore, she mentioned that some of the larger IPOs from 2025 have seen positive trading performance, citing GemLife Communities as a successful example.
Despite some mixed outcomes for other IPOs—such as Virgin Australia, which has struggled to maintain its initial listing price—Paton remains confident that these fluctuations will not deter future listings. “What I’m hearing from the banks is they’re getting good reception from investors, whereas a year ago it was harder to set up meetings and get interest,” she said. Non-deal roadshows and positive investor feedback are encouraging companies to pursue IPOs.
Upcoming IPOs and Market Dynamics
While Paton did not disclose specific clients, she confirmed that Ashurst is currently advising on five mid-sized IPOs slated for 2026. These include two resource companies, one with offshore assets, an infrastructure business aiming to leverage public markets for growth, and two technology firms that have begun to turn modest profits.
Major players in the IPO pipeline include I-MED, which is preparing for an IPO with assistance from Sydney-based corporate advisory firm Reunion Capital Partners. Additionally, Bain Capital is contemplating a return to the ASX for its $2 billion aged care company Estia Health. TPG Capital-backed Greencross is also in discussions with ECM bankers at Jefferies and Barrenjoey.
The landscape is further complicated by software unicorns like Canva and Rokt considering US listings, while on the ASX, Pay.com.au expects to list in the first half of 2026 following a valuation of $630 million. Other notable IPO candidates include Amart Furniture, which recently acquired Freedom Furniture, and online merchandise importer New Aim.
Despite this optimistic outlook, Paton tempered expectations, indicating that while activity may increase, it likely will not reach the peaks seen during the 2021 and 2022 financial years. She also acknowledged that any significant downturns in global equity markets leading up to late January could dampen enthusiasm for IPOs, as marketing efforts typically align with reporting seasons in February and August.
Ashurst’s insights reflect a cautious yet hopeful perspective on the IPO landscape, as the firm prepares to navigate a potentially transformative period for equity capital markets.
