We’re one-third of the way through the 2023 financial year and it appears there’s a definite capital drain in ASX markets.
At the end of October, total capital raised via the ASX sits at $23.7 billion, less than half of the amount that had been raised at the end of October 2021 ($49.1 billion).
The vast majority of the capital that has been raised this year has come via secondary capital - when a company approaches existing and potential investors to ask for additional capital in the form of either equity or debt.
Of the $23.7 billion raised this year, $22.6 billion has been secondary capital.
Just $1.1 billion has been raised in initial capital - which includes company IPOs, stapled securities, secondary listings and debt listings - a fall of 93% year-on-year.
October figures
Only $342 million was raised in initial capital in October, down 95% year-on-year.
Secondary capital raised also took a significant hit in October, down 79% year-on-year to $2.8 billion.
Eight new companies were admitted to quotation in October, compared with 23 the year prior.
Only 26 companies have successfully listed in FY23, compared with 97 at the same time last year.
October saw an average of 1.5 million trades per day, down 7% year-on-year, with the average daily value of those trades worth $5.7 billion, down 9%.
The total cash market value for September was $137.3 billion, down 9% year-on-year.
Futures trades hit
The volume of futures trades took a significant hit, with about 9.2 million contracts trading hands, down 26%.
The notional value of OTC interest rate derivative contracts centrally cleared was $427.5 billion, up on last year’s $300.5 billion.
Single stock options average daily contracts traded were up 1%, while index options average daily contracts traded were up 4%.
- Daniel Paproth