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ASX Rule Changes – A Summary

The Australian Securities Exchange (ASX) has just released their revised rule changes that will take effect from 19 December 2016.

We note that the changes have been modified to those originally proposed.

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
  • A single tier spread test requiring 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
  • Standardising the $1.5 million working capital requirement for those admitted under the assets test.

If you have any questions on the new rules or wish to discuss an IPO opportunity please email or phone us.