The Australian Securities Exchange (ASX) has announced amendments to its Listing Rules to implement changes to its admission requirements which take effect from 19 December 2016.
In some respects, the new admission requirements are less rigorous than those previously proposed by ASX. In many respects, these changes are not materially different from the current requirements and will not pose any greater impediment or burden on entities seeking to list on the ASX. However, changes to the requirements for a minimum free float of 20% and audited accounts for companies seeking admission under the assets test may be more difficult to satisfy than the current admission criteria.
The new rules are intended 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.
In particular, ASX has emphasised:
ASX is making changes to a number of its listing admission requirements to ensure that the ASX market continues to be a market of quality and integrity, and remains internationally competitive given the continuing trend in cross-border international listings. ASX has also sought to ensure that its listing admission requirements continue to support and provide a pathway for early stage resources, and technology and innovation entities to list and access capital.