The law firm Ashurst is optimistic about a significant increase in initial public offerings (IPOs) in 2026, supported by a robust deals pipeline and a resurgence in global IPO activity. According to Patricia Paton, an Ashurst partner specializing in capital markets, the United States is a critical indicator of this trend. The firm’s upcoming ECM 2025 financial year report emphasizes the promising start to the US financial year, where 60 IPOs raised a combined $14.6 billion, marking the most active quarter since 2021.
Market Dynamics and Investor Sentiment
Paton highlighted that the activity in the US often sets the tone for other markets, particularly Australia. “This strong performance gives me confidence that IPO activity in Australia will follow suit,” she stated. The Australian Securities Exchange (ASX) is currently experiencing increased activity, which Paton notes is a welcome change after a period of stagnation.
Several factors are converging to enhance the IPO landscape. Regulatory bodies are actively working to instill confidence in companies considering going public. Initiatives aimed at expediting listing timelines are part of this effort. Furthermore, Paton pointed out that some of the larger IPOs from 2025 have performed adequately, citing GemLife Communities as a positive example. However, she acknowledged that companies like Virgin Australia and Greatland Gold have faced challenges following their listings.
Despite the mixed performance of certain IPOs, Paton believes that initial setbacks will not deter other companies from proceeding with their own plans. “What I’m hearing from the banks is that they’re receiving a better reception from investors, which is a significant improvement from a year ago,” she explained. This shift allows companies to feel more confident about launching their IPOs, particularly through non-deal roadshows and positive investor feedback.
Upcoming IPOs and Key Players
Ashurst is currently advising on five mid-sized IPOs scheduled for 2026. These include two resource companies—one with offshore assets and a head office in Australia—an infrastructure business looking to leverage public markets for growth, and two technology firms that have begun to turn modest profits. The upcoming IPO landscape is also bolstered by several notable players in the pipeline.
Among the prominent names is I-MED, which has engaged Reunion Capital Partners to assist in its IPO preparations. Additionally, Bain Capital is contemplating a return of its aged care giant Estia Health to the ASX, while TPG Capital-backed Greencross has enlisted bankers from Jefferies and Barrenjoey for support. The recent valuation increase of Firmus Technologies to $6 billion further highlights investor interest in data centre capacity rental businesses.
Several software unicorns, such as Canva and Rokt, are also considering listings in the United States. On the ASX, Pay.com.au, which recently achieved a valuation of $630 million, is expected to list in the first half of the year. Other companies, including Amart Furniture, which recently acquired Freedom Furniture, are preparing for their own floats.
While Paton maintains an optimistic outlook, she does not anticipate IPO activity in the coming year reaching the highs seen in 2021 and 2022. She cautioned that global equity market fluctuations could impact this positive trajectory, particularly as IPO marketing typically occurs at the end of reporting seasons in February and August.
As the market evolves, Ashurst’s insights and the firm’s active involvement in various IPOs reflect a broader confidence in the equity capital markets, setting the stage for what may be a revitalized IPO environment in 2026.
