Private markets flourish at expense of ASX

The number of companies listed on the Australian Securities Exchange (ASX) has been in decline, reflecting a notable shift towards private markets, according to EQT Capital Raising.

The total number of companies listed on the ASX decreased from 2,289 in February, last year, to 2,183 last month and as at the end of February, 110 companies had withdrawn from the ASX so far this financial year, compared to 75 over the same period a year earlier.

As well, new company listing on the ASX were down 20% with only 38 new entities admitted compared to 47 a year earlier.

Commenting on the developments, EQT Capital Raising Managing Director of Client Relations, Martin Donnelly said the trend aligned with a global pattern of increasing privatisation, driven by the desire for simpler ownership structures and enhanced capital fluidity.

“Australian investors are strategically pivoting towards private markets in pursuit of diversification and higher returns. With the public markets contracting, private assets offer fresh opportunities for building resilient portfolios and tapping into substantial value creation beyond the public sphere,” Donnelly said.

He said private markets were fast becoming democratised with many companies creating avenues for wholesale investors, advised clients and even retail investors to buy into the assets.