ASX has outlined a number of opportunities to improve the global competitiveness of Australia’s listed markets, streamline listing processes, and open new investment opportunities for investors.
Responding to ASIC’s Australia Evolving Capital Markets discussion paper, ASX reiterated its view that the current net decline in listed companies is largely driven by cyclicality, but there are strong opportunities to improve the attractiveness and efficiency of listed markets.
In the submission, ASX has advocated for:
- A streamlined IPO process by reducing the regulated ‘on-risk’ period for investors and companies.
- Clarifying regulation around financial forecasts in prospectuses, including allowing them to be optional for new listings.
- Reducing the required minimum level of ‘free float’ for new listings and S&P/ASX Index inclusion to attract more founder-led companies.
- A more efficient and accessible corporate bond market to improve flexibility for issuers and increase access for retail investors.
- Adjusting size thresholds for foreign exempt listings to encourage more international businesses to take secondary listings on ASX – while maintaining strict requirements for equivalent standards of listing rules and compliance.
ASX has suggested further public discussion and consideration should be given to dual class share structures in Australian public markets. This follows moves in several countries – UK, Singapore, China and Hong Kong – to change regulatory settings to allow or facilitate dual class share listings. ASX has also recommended further discussion and evaluation of new frameworks to enable more orderly and transparent on-market sell downs by founders.
James Posnett, General Manager of Listings, ASX said:
“Listed markets are crucial to the Australian economy. They provide access to growth capital for our businesses and support the democratisation of wealth creation by opening access to investment opportunities for all types of investors.
“Global competition for new listings has accelerated and while we believe ASX listings will recover from the recent slowdown in the global IPO market, it is an appropriate time to publicly debate how to improve the attractiveness of Australia’s listed markets.
“It is vital our listed markets remain globally competitive – and a missed opportunity for investors and our economy if Australian companies choose to list offshore.
“The opportunities outlined in our submission are designed to enhance the attractiveness of our listed markets to help them remain competitive with global peers and private capital, as well as provide retail investors with more wealth creation opportunities.
“This is an important discussion, and we look forward to continuing to engage with the industry and ASIC as it considers the next steps following the consultation.”
Summary of key points in ASX submission
