While a number of initial public offerings (IPOs) in Australia have been successful in the last 18 months, others have not. Despite the poor performances, the UBS believes that the IPO pipeline will continue to grow in 2014, according to Nine MSN.

Among the successful IPOs in the Australian Stock Exchange (ASX) are insurance broker Steadfast, foreign currency trader OzForex, and IVF specialist Virtus Health. However, Dick Smith, Nine Entertainment, and Pact Group have performed poorly in their own debuts, the report detailed.

Investment bank UBS believes that in spite of these poor performances, the IPO in 2014 will continue to expand. Along with this, merger and acquisition (M&A) activities will also climb in the following year, the report said..

The Australian Financial Review reports that the local equity capital market (ECM) is set to post an estimated total volume of $24 billion in 2013. IPO activity has been dominant in the second half of the year. While this increase is 15% more compared to 2012, it is still substantially lower than the decade average volume of $40 billion per year, Nine MSN reported.

Richard Sleijpen, ECM executive director of UBS, said: "We have seen very strong investor support for growth businesses, particularly where the investment case offers a unique exposure that is hard to get through existing listed companies."