ASX has today responded to ASIC’s announcement on the path for faster IPOs.
James Posnett, ASX General Manager of Listings, commented:
“We welcome the announcement by ASIC today on streamlining the IPO process. It will shorten the time it takes companies to get to market, which will help reduce risk for both investors and issuers.
“The announcement is a positive step forward for the listed markets in Australia. While cyclicality is a key driver of public markets, there are clearly changing market dynamics that require the capital markets ecosystem to adapt through continuous improvement – we agree there is no silver bullet.
“The streamlined IPO process is one of five ideas we have put forward in our submission, and a further two where we think there is an opportunity for further discussion.
“We look forward to continuing to engage with our customers, ASIC and the industry so we can enhance the attractiveness of our listed markets to remain competitive with global peers and private capital, as well as provide retail investors with more wealth creation opportunities.”
ASX’s submission to the ASIC discussion paper on Australia’s evolving capital markets reiterated its view that the current decline in listed companies is largely driven by cyclicality, but there are strong opportunities to improve the attractiveness and efficiency of listed markets. The submission can be viewed on the ASX website.
Reforms that continue to make Australia an attractive listings destination remain a key priority for ASX. In the most recent ASX Monthly Activity Report released on 5 June, ongoing listings activity has attracted total capital onto the exchange of $79 billion on a year-to-date basis (after delisted capital for the same period of $54.3 billion, this delivered net new capital of $24.7 billion).
