By Melanie Burton and Divya Rajagopal
MELBOURNE (Reuters) – Australia’s bourse is ready for a record variety of secondary listings this yr from mine developers enticed by the country’s pension wealth, regulation and a jurisdiction less exposed to U.S President Donald Trump’s trade wars, industry sources said.
The Australian Securities Exchange (ASX) is growing its market share in metals and mining partly on the expense of Toronto and London rivals, just because the sector must expand by $100 billion a yr to supply the metals needed to succeed in net-zero emissions by 2050, industry figures show.
The strength in mining comes at the same time as overall listings on the exchange have fallen during the last decade.
A successful listing by Canadian copper miner Capstone last yr that allowed private equity to exit and Australian investors exposure to a latest operating copper mine, with eventual index inclusion, ignited latest interest, banking and lawyer sources said.
“Definitely way more interest in Canadian-listed firms coming to the ASX,” said Sherif Andrawes, head of world natural resources for consultancy BDO, who has worked on 4 recent listings.
“The ASX … is in a healthier state than the Canadian markets for exploration firms for the time being,” he said. “There are more within the pipeline.”
Considered one of the important thing attractions is Australia’s large pool of pension wealth, the world’s fourth largest with assets of A$4.1 trillion ($2.58 trillion), and funds’ willingness to carry a major proportion of their money in Australian-listed stocks.
That’s attractive for even foreign domiciled miners seeking to raise the billions needed to develop latest projects. Australian pension funds allocate much more to domestic shares than their rivals, at around 23% in keeping with JP Morgan estimates, in comparison with 4% each in Canada and the UK.
They’re heading right into a hungry market. Buyouts like BHP’s acquisition of copper miner Oz Minerals in 2023 have winnowed the universe of mining stocks for managers with resources mandates.
“M&A has created a chance for firms to fill the board,” said Todd Warren, a portfolio manager at Tribeca Investment Partners in Sydney.
Canadian developer Marimaca Copper is predicted to launch a secondary listing on the ASX this month within the second of at the least 4 in train for this yr, in keeping with filings and source estimates, as many as in 2021, the ASX’s top yr to date.
“We’re at a very important point in our development and are searching for to expand our pool of potential investors as we approach a financing decision to construct our flagship project in Chile, which we expect… in the primary half of 2026,” Marimaca head of corporate development Nico Cookson told Reuters.