The ASX, after a 5 month consultation, has released new Listing Rule changes that apply to all new Initial Public Offerings. Cannings Purple’s Investor Insight team explain.
The ASX, after a 5 month consultation, has released new Listing Rule changes that apply to all new Initial Public Offerings.
The key listings admission rule changes are:
- For profit test entities, an increase in the requirement for consolidated profits for the 12 months prior to admission from $400,000 to $500,000.
- An increase in the net tangible assets test (NTA) from $3 million to $4 million. A proposal to increase it to $5 million was subject to consultation.
- An increase in the market capitalisation test from $10 million to $15 million. A proposal to increase it to $20 million was subject to consultation.
- A new 20% minimum free float requirement.
- A single tier spread test requiring at least 300 security holders each holding at least $2,000 of securities.
- New audited accounts requirements for assets test entities requiring the disclosure to the market of 2 full financial years of audited accounts for the entity seeking admission 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.
- A standardised $1.5 million working capital requirement for all entities admitted under the assets test. This is consistent with the consultation proposal.
For full details of the changes, click here