Australia's bourse is poised for a record number of secondary listings this year from mine developers attracted by the country's pension wealth, regulatory environment, and a jurisdiction less influenced by U.S. politics, according to industry sources.
The Australian Securities Exchange (ASX) is increasing its market share in metals and mining, partly at the expense of competitors in Toronto and London, as the sector needs to expand by $100 billion annually to produce the metals required for achieving net-zero emissions by 2050, industry figures indicate.
Despite an overall decline in listings at the exchange over the last decade, the mining sector remains strong. A notable listing by Canadian copper miner Capstone last year, which allowed private equity to exit and provided Australian investors with exposure to a new copper mine, sparked renewed interest among banking and legal professionals.
"There is definitely much more interest in Canadian-listed companies coming to the ASX," stated Sherif Andrawes, head of global natural resources at consulting firm BDO, who has participated in four recent listings. He noted that "the ASX... is in a healthier state than the Canadian markets for exploration companies at the moment," adding that more listings are anticipated.
One major draw is Australia's vast pool of pension wealth, the world's fourth-largest with assets amounting to A$4.1 trillion ($2.58 trillion), and funds' propensity to invest a significant portion in Australian-listed stocks. This makes Australia appealing for foreign miners seeking to raise the billions needed to develop new projects. According to JP Morgan estimates, Australian pension funds allocate about 23% of their portfolios to domestic shares, in contrast to only 4% in their international counterparts.
The market is hungry for new opportunities. Buyouts like BHP's acquisition of Oz Minerals in 2023 have narrowed the options for managers with resource mandates. "M&A has created an opportunity for companies to fill the board," remarked Todd Warren, a portfolio manager at Tribeca Investment Partners in Sydney.
Canadian developer Marimaca Copper is expected to initiate a secondary listing on the ASX this month, part of a series of at least four expected this year, rivaling the record set in 2021. Marimaca's head of corporate development, Nico Cookson, emphasized the company's need to expand its investor base as it approaches a financing decision for its flagship project in Chile, anticipated for the first half of 2026.
Australian investors' enthusiasm for mining stocks has led BHP to eliminate its dual London listing in 2022, which injected A$96 billion into the ASX and solidified its position as the leading mining exchange. While London Stock Exchange Group (LSEG) did not comment directly, it pointed out that it holds a higher market capitalization in mining and metals than the ASX.
The pressure is mounting on top iron ore miners as interest from Canadian resource companies remains strong. According to James Posnett, the ASX's head of listing, interest from Canadian firms to list is "the most engaged and active we have ever seen it." He added that geopolitical market volatility has encouraged many companies to diversify their shareholder base outside North America, viewing Australia as a stable economy with robust investor demand.
The ASX did not disclose the expected value of listings for the year. However, the trend is not unidirectional, with the TSX reporting that it encourages dual listings—having welcomed seven Australian companies while only two Canadian firms listed in Australia last year, including FireFly Metals, which is developing a copper-gold project in Newfoundland.
Overall, the number of ASX-listed companies is projected to decrease by 4% from 2014 to 2024, according to Australia's share market regulator. "What is happening in mining is a fascinating counterpoint to the ‘shrinking ASX’ narrative," noted Paul Schroder, a partner at law firm King & Wood Mallesons in Sydney.