ASX capital markets have slowed to a snail’s pace

ASX capital markets have slowed to a snail’s pace

Raised only $17 million in seed funding in the month of August, compared to $1.05 billion in August last year, according to statistics released by the ASX.

The staggering 98% drop comes amid a slow start for ASX capital markets in fiscal 2023; only $295 million in seed funding was raised, compared to $6.9 billion at the same time last year.

That represents a 96% drop for seed capital, which consists of funds raised through IPOs and new ASX listings.

Secondary markets are healthy, however, with $14.8 billion raised so far in FY23, up 31%.

Secondary capital is money raised through the buying and selling of shares in the open market.

That brings the total amount raised in the first two months of FY23 to $15.1 billion, down 17% from a year earlier.

In August, only four new companies were admitted to the list, 17 of which were delisted.

Market cash value for August was $131.4 billion, down 7% year-over-year, while total market cash value was $151.4 billion, also down 7%.

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