Australia’s long-quiet IPO market may be stirring, with online furniture retailer Koala and payments platform Pay.com.au both announcing plans to list on the ASX this week. The deals arrive after a prolonged drought in Australian mega listings, with the most recent consumer IPOs being GemLife Communities (ASX:GLF) and Virgin Australia (ASX:VGN) both in 2025 and Guzman y Gomez’s (ASX:GYG) float in mid-2024.
Koala is targeting a $305 million market capitalisation and raising around $68 million, pricing shares at $3.40. Part of the proceeds will be used to reduce debt, while the remainder will provide liquidity for existing shareholders. The company attempted to list last year but withdrew amid market volatility following global geopolitical tensions. This time, the offer has been structured more conservatively, valuing Koala at roughly 10.5× forecast EBITDA, which bankers hope will appeal to investors in a cautious market.
Meanwhile, Pay.com.au is seeking to raise $85 million in capital, valuing the business at around $850 million pre-money. Unlike Koala, the payments platform’s IPO is focused entirely on funding growth, with no existing shareholders selling down. Significant escrow arrangements for founders and major shareholders are also intended to signal long-term commitment.
The timing is notable. Global markets remain volatile following escalating conflict in the Middle East, including higher oil prices and sharper moves across equity markets. Geopolitical shocks typically shut the IPO window, as investors become more risk-averse and new listings struggle to price accurately amid rapidly changing market conditions. In that environment, most companies delay floats until markets stabilise.
More broadly, IPO activity has slowed in recent years as companies increasingly turn to private capital, where funding from private equity, venture investors, and institutional backers can often be raised more quickly and with fewer disclosure requirements. Public listings also bring higher compliance costs, regulatory scrutiny, and the pressure of quarterly market expectations, making IPOs less attractive unless companies have a clear strategic reason to list.
