Introduction
Debate is intensifying around the future of Australia’s public markets. With 92 new listings and $126.4 billion in capital raised in 2025, the ASX delivered a strong rebound year. Yet private markets captured $5.1 billion in venture capital alone, raising a broader question.
Is the ASX losing relevance, or simply evolving? The tension between public liquidity and private growth capital is reshaping how Australian companies scale. This article examines the data, structural drivers and what it means for investors heading into 2026.
ASX 2025 Snapshot, A Rebound With Friction
The S&P/ASX 200 reached an all time high of 9,094.7 on 21 October 2025. That marked a 23.8% recovery from April lows triggered by US tariff volatility. Rate cuts from the Reserve Bank of Australia and the Federal Reserve, totalling 0.75% domestically, supported sentiment.
Listings increased 37% year on year to 92 new entrants. These IPOs added $38.8 billion in market capitalisation and raised $6.3 billion in fresh capital, the strongest year since 2021. Average first day returns reached 24.2%.
Follow on raisings totalled $36.7 billion. Net new capital hit $72 billion after accounting for delisting’s. Momentum returned. Stability has not fully. Total listed entities dipped 3% year on year to roughly 2,052 companies. Delistings, at 93 year to date, continue to offset fresh supply. Churn remains elevated.
Standout 2025 Listings
Several large floats defined the year:
| Company | ASX Code | Sector | Market Cap A$m |
|---|---|---|---|
| DPM Metals | DPM | Materials | 6,989 |
| Greatland Resources | GGP | Materials | 4,426 |
| Ryman Healthcare | RYM | Health Care | 2,417 |
| Virgin Australia | VGN | Industrials | 2,268 |
| Gemlife Communities | GLF | Real Estate | 1,582 |
Materials dominated international inflows. Technology representation remained thinner than prior cycles.
Private Markets Accelerate
While public markets stabilised, private capital expanded aggressively. Venture funding reached $5.1 billion across 390 deals in 2025, up 24% year on year. Artificial intelligence accounted for 61% of deployed capital. Mega rounds represented 58% of total funding volume.
Private equity added US$8.5 billion in deployment in Q3 alone, alongside US$11.5 billion in exits. Over the past decade, private assets under management in Australia have grown 161%. Public markets have roughly doubled over the same period.
Superannuation funds now allocate an estimated $66 billion to private equity. This shift is structural.
Public vs Private Capital in 2025
| Metric | ASX Public Markets | Private VC and PE |
|---|---|---|
| Capital Raised | $126.4B total, $72B net | $5.1B VC, $8.5B PE Q3 |
| Activity Volume | 92 IPOs | 390 VC deals |
| Key Sectors | Materials, Energy | AI 61%, Health Tech |
Public markets still dominate absolute capital formation. Private markets dominate early growth exposure.
Both are expanding, but in different ways.
Core Drivers Behind the Shift
Companies are staying private longer. Higher early stage valuations and flexible governance structures make private funding attractive. Listing costs and compliance obligations remain deterrents for some founders.
Yet liquidity remains the ASX advantage. Australia’s superannuation pool now exceeds $4.2 trillion, with approximately 25% allocated to ASX equities. That depth supports secondary trading and institutional participation.
Privatisations and takeovers also recycle capital away from public exchanges. More than 150 entities exited in FY24. International listings have increased, particularly in mining. Sixteen foreign companies joined the ASX in 2025, a fourfold increase from prior years. Technology pipelines, however, remain comparatively thin.
Regulatory Reform and Competitive Pressure
The Australian Securities and Investments Commission introduced IPO fast track processes in the second half of 2025. Seven issuers utilised the streamlined pathway, reducing listing timelines by approximately one week for capitalisations above $100 million.
Prospectus review reforms and updated guidance under RG 228 aim to balance investor protection with speed. Competition from Cboe Australia adds further pressure to modernise.
Reform is underway. Execution will matter.
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Is the ASX Dead?
No. The 2025 rebound demonstrated resilience. International listings delivered average returns above 32%. Capital formation recovered meaningfully.
However, listing volumes remain fragile. Technology representation lags global peers. Private markets are absorbing early stage growth capital. The ASX is not obsolete. It is recalibrating.
Energy transition projects, AI infrastructure and critical minerals could anchor the next cycle. Markets move in phases.
Investor Playbook for 2026
Public markets offer liquidity and transparency. Private markets offer alpha and earlier access. Diversification is essential.
Listed Investment Vehicles raised $3.1 billion in 2025, providing hybrid exposure. Investors should monitor venture capital flows that may later graduate to public listings. Mid cap and resources exposures remain leverage points if reform momentum continues.
Positioning requires flexibility.