After one of the quietest years for Australian IPOs in recent memory, the corporate watchdog is stepping in. This time to make it easier for companies to get to market via Initial Public Offering or IPO.

In a move designed to streamline the listing process and restore confidence in public markets, the Australian Securities and Investments Commission (ASIC) has announced a two-year trial that could shave a week off the standard IPO timeline for eligible companies listing via the ASX Fast Track process.

It’s part of a broader push to address the dramatic slowdown in IPO activity in recent years. In 2024, just 29 companies listed on the ASX — the lowest number in over two decades. While a handful of large deals helped boost total funds raised, the pipeline of new listings has all but dried up. For ASIC, that’s not just a market trend — it’s a structural red flag.

Blame it on macro volatility, interest rate hikes, or the rise of private equity — whatever the reason, companies are opting out of going public. Many are choosing to raise capital privately or delay their listings altogether, citing deal execution risk and regulatory friction.

ASIC’s own discussion paper earlier this year flagged the issue head-on: Australia’s public markets are shrinking, not just from a lack of new listings, but from a growing number of de-listings too. That’s bad news for market dynamism, investor access, and capital formation.

From IP-slow to IP-go: what’s changing?

The new initiative is focused on two key changes.

First, ASIC will now offer informal reviews of IPO documents — including Pathfinder prospectuses — up to 14 days before they are formally lodged. That gives issuers earlier certainty and allows time to make changes before the statutory exposure period kicks in. In theory, this could reduce the overall IPO timeline by up to a week — critical in volatile markets where timing is everything.

Second, ASIC has taken a “no-action” stance that lets eligible companies start accepting retail investor applications during the exposure period itself, instead of waiting until it ends. That move aligns the process more closely with how Product Disclosure Statements (PDSs) work in managed funds and other sectors — and cuts down on admin.

Taken together, the measures are designed to reduce friction, minimise pricing risk from market shocks during listing windows, and give IPO candidates more confidence to press go.

No magic bullets

ASIC Chair Joe Longo was quick to point out that these changes aren’t a silver bullet.

“Greater deal certainty for companies should help deliver more IPOs,” Longo said in the agency’s announcement. “But while we do not see regulatory settings as the sole solution, we’re committed to actionable ideas that make listing more attractive.”

The trial, which is only available to companies with a market cap of at least $100 million and no escrow conditions, will be closely monitored. ASIC retains the ability to pull the plug — or expand it — depending on market response.

What it means for investors

For professional and retail investors alike, more IPOs mean more access to growth opportunities — especially in sectors that have traditionally been underrepresented on the ASX. It also signals a renewed focus on the health of public markets at a time when capital is increasingly flowing into private equity, venture capital, and offshore assets.

Whether this new approach will bring back the boom-era pipeline of listings remains to be seen. But at a time when public market participation is under threat, even modest changes like these might just nudge more companies over the line.