There are 9 key admission requirements you must meet in order to list on the ASX.
- Structure & operations: Must be appropriate for a listed company, as set out in Guidance Note 1 Applying for Admission –ASX Listings and the ASX Corporate Governance Principles.
- Options: If the entity has options on issue, the exercise price for each underlying security must be at least 20 cents in cash.
- Prospectus or PDS must be lodged with ASIC or, if the ASX agrees, an information memorandum complying with ASX Listing Rules. These must include a prominent statement that ASX takes no responsibility for the contents of the document.
- Free Float: A minimum 20% of the entity’s ordinary securities (non-affiliated) must not be subject to escrow.
- Quotation of main class: The entity must apply for and be granted permission for quotation of all the securities in its main class (except restricted securities, and if the entity so chooses, securities issued under an incentive scheme that are subject to restrictions on transfer). The offer price must also be at least 20 cents.
- Profits or assets test: The entity must satisfy either test.
- Restriction Agreements: The entity must then give completed restriction agreements to the ASX and comply with chapter 9 of the ASX Listing Rules. The ASX will establish a specified time to be the escrow period.
- Restricted Securities: If an assets test entity has issued restricted securities before it is admitted, the ASX requires that they be held in escrow for a period of time (Restricted Securities).
- Spread of shareholders: There must be at least 300 ‘non-affiliated’ security holders each with a parcel of at least $2,000 worth of securities, excluding Restricted Securities.
Please note the above is a general overview only and should not be relied upon as advice may differ depending on the specifics of the company looking to IPO.
Considering an IPO?
Automic Group are Australia’s #1 IPO services provider. If you are interested in finding out more, please call Max Swadling on (02) 8668 0023 to book a demo or email max.swadling@www.automicgroup.com.au.
