Thursday November 3 2016

News Source: Global Exchanges

Focus: Listing Rules

Type: General




The Australian Securities Exchange (ASX) has released new rules for admission to the ASX official list and its response to the consultation on the proposed requirements, which were opened for responses in May 2016.

The new rules address the need to maintain appropriate listing standards and investor confidence in the ASX market, while providing a pathway for companies to list and access capital across their lifecycle.

The key listing admission rule changes are:

  • increasing the requirement for profit test entities to have consolidated profits for the 12 months prior to admission from $400,000 to $500,000;
  • increasing the net tangible assets test from $3 million to $4 million;
  • increasing the market capitalisation test from $10 million to $15 million;
  • introducing a 20% minimum free float requirement;
  • creating a single tier spread test of at least 300 security holders each holding at least $2,000 of securities;
  • requiring asset test entities to disclose to the market two full financial years of audited accounts and any significant entity or business that it has acquired in the 12 months prior to applying for admission or that it proposes to acquire in connection with its listing; and
  • standardising the USD1.5 million working capital requirement for those admitted under the assets test.

The new rules are effective from Monday 19 December 2016, subject to the normal regulatory clearance process.

Click the link at the top of the page for more information.