Speaking at the exchange’s annual general meeting on Monday, Lofthouse shared that while global IPO activity remained muted, “green shoots” were emerging, with 15 new listings recorded in the first quarter of FY2024–25.

Key participants this year include post-demerger Webjet Group, Bhagwan Marine and dual listing from Alcoa.

Lofthouse added that several other companies had also hinted at potential listings on the ASX in the near future, signaling growing confidence in market conditions.

The ASX's contraction has been visible for months, with the latest data highlighting a dramatic shift in Australia's investment landscape with public listings falling from 2,219 to just 2,124, reflecting a global trend where the appeal of public markets is rapidly waning.

According to the ASX Group's latest activity report, the market operator saw just 15 new listings in the 12 months to September 30, while 46 entities delisted.

But while analysts see it as a sign of a wider shift in how companies are choosing to grow and access capital, Lofthouse believes the uptick is due to better macro conditions.

"Many of the trends we saw at the end of FY24 continued into the first quarter of FY25," she said.

"More normalized macroeconomic conditions appear to be favoring an increase in listing activity, although continued geopolitical instability may further weigh on sentiment." It is important to note that there is a delay between these more favorable terms and the IPO taking place while issuers work through the process to meet their listing obligations.”

More broadly, the CEO shared that the ASX had seen $411 billion of net new capital listed on the ASX in the seven years to September 2024, which she said demonstrated the long-term attractiveness of our market.

Reflecting on the first quarter of FY24-25, she added: "The total value of money market trading rose by 11 percent in the first quarter of FY25 as offshore macro events, including central bank rate cuts and speculation around additional economic stimulus in China, led to increased volatility.”

The ASX's FY23-24 financial report, published earlier this year, revealed that cyclically lower activity in the capital markets affected the listings business, with total revenue for the division down 4.8 per cent to 208.2 million dollars.

Initial public offerings (IPOs) also slowed, from 57 recorded in FY22-23 to 56 in FY23-24, coupled with an increased number of delistings from 119 to 156.

Despite the data, the ASX's listing manager earlier this year assured that after a quieter period, optimism abounds as the cyclical nature of IPO activity prepares to resume in the second half of this year, with momentum carried into 2025.

In a material published on the ASX in July, Kate Galpin said: “After an extremely busy 2021, the last few years have been relatively quiet, similar to 2011-12, but the IPO market is cyclical and activity will return.

"Headwinds caused by uncertainty around inflation and rising interest rates played a role in reducing the number of new listings globally last year and the ASX was no exception with some long-awaited IPOs being shelved."

Others, however, believe that the shrinking size of public markets is a sign of a larger update in private markets.

Martin Donnelly, managing director of client relations at EQT Capital Raising, recently explained that the rising costs and complexity of going public are some of the key considerations driving companies to choose the private equity route, coupled with tighter regulations, increased compliance requirements and greater control from side of stakeholders, making the public market less attractive.

"Private markets have become a vital part of modern investment strategies, not only for portfolio diversification, but also as an engine for sustainable, long-term wealth creation," said Donnelly.

“With fewer public companies to choose from, investors can no longer rely solely on the public markets for growth. By leveraging private capital, they can gain access to innovative sectors and high-growth opportunities that offer more resilience and less exposure to market volatility.”

According to the ASX, total new capital quoted in September was $6 billion, compared with $7.3 billion in the previous corresponding period.

Across the pond, the number of publicly listed companies in the US has fallen by nearly 50 per cent over the past 25 years, underscoring that the ASX's own shrinking is not an isolated trend.

Similarly, the London Stock Exchange has seen a more than 15 percent decline in listings over the past decade, according to EQT.