03 Oct CANNINGS ON PUBLIC MARKETS; TOP NEWS
FOOD FOR THOUGHT – Australia’s public market challenges
December, usually prime time for ASX listings, is looking decidedly barren this year. Despite the market reaching record highs and interest rates coming down, as it stands the IPO pipeline has pretty much run dry. The AFR’s Chanticleer column ponders whether fund managers are to blame for the lack of deals or if its that private equity isn’t convinced investors want to buy their assets. The companies private equity firms bought in the cheap-capital days of years gone by are proving hard to exit which means PE investors aren’t getting the cash returns they expected. This will likely lead to more consolidation in the sector, and even more companies going out of business.
This, combined with the very real challenges facing the ASX – smaller family-run businesses being unsure about life in the public markets and larger companies favouring Nasdaq over an Australian listing i.e. Canva – makes for a spikey operating environment. In such turbulent times, clear and confident communication becomes a valuable asset.
For those navigating capital raises, mergers and acquisitions or just trying to keep their heads down in a world of tariffs, AI and geopolitical concerns, proactive risk assessment and scenario planning is also more important than ever before.
To boost listings and economic growth, ASIC needs to introduce more than just relaxed regulations and fast-track systems. A collaborative effort between businesses, markets, and policymakers is essential to foster investment and strengthen public equity markets for the long term. In the meantime, a strategic approach to communicating with key stakeholders goes a long way in supporting businesses to maintain reputational equity and manage risk.
TOP NEWS OF THE WEEK
- Westpac is being sued for allegedly enabling a $250 million Ponzi scheme by liquidators of Chris Marco’s companies
- ASIC issues a scathing report card on the way the $4.3 trillion super industry value unlisted assets
- The proposed merger of two of Australia’s biggest media companies, Seven West Media and Southern Cross Media, triggers investor fury about the adequacy of the nation’s merger laws, which could allow the tie-up without an investor vote
- Alibaba’s former Australian boss Maggie Zhou is spearheading a $1.3 million investment in Liftwomen, a crowdfunding platform exclusively for female entrepreneurs aiming to close the near $2 trillion gender finance gap across Asia Pacific
- Optus receives a stern scolding from the federal government and promises to get its network and processes audited by independent advisors
- Prime Minister Anthony Albanese calls on China and BHP to resolve their iron ore dispute, urging a swift conclusion to the deal that jeopardizes 3.5% of Australia’s total exports
- The Australian Tax Offices’ crackdown on businesses paying no tax and advisers coaching their clients on how to dodge the tax man means tax receipts remain at near record levels – Optus didn’t pay any corporate tax in the period
- Commonwealth Bank is hit by a major outage, with all online banking services taken offline
- Pub baron Jon Adgemis, founder of Public Hospitality, declares bankruptcy owing more than $1.8 billion in debts
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