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What are the requirements for listing a public company on the ASX?

Are you considering listing your company on the Australian Securities Exchange (‘ASX’) and want to know the requirements?

 

1. Why list on the ASX?

By listing a company on the ASX, the company will receive a globally recognised listing with access to:

 

2. What are the requirements for listing on the ASX?

The ‘ASX Listing Rules’ set out the requirements that must be complied with in order for a company to list on the ASX.

These Listing Rules specify the minimum admission criteria being:

The ASX website provides the following table summarising these requirements:

ASX table of general requirements


3. What are the structure requirements for list on the ASX?

A company applying for listing on the ASX must be structured appropriate for a listed entity, including:

Please note that if the company applying for listing on the ASX is a foreign entity then further Listing Rules apply.

 

4. What are the shareholding requirements for listing on the ASX?

A company applying for listing on the ASX must have the appropriate shareholding for a listed entity, which means that the company must satisfy one of (a), (b) or (c) below.

These conditions are not met if obtained by artificial means.

 

5. What are the size requirements for listing on the ASX?

A company applying for listing on the ASX must have the appropriate size for a listed entity, which means that the company must satisfy either the ‘Asset Test’ or the ‘Profit Test’ as discussed below.

To satisfy the Asset Test, at the time of admission a non-investment entity must have either:

  1. net tangible assets of at least $3 million; or
  2. at least $10 million market capitalisation.
  3. Profit Test:

To satisfy the Profit Test, a company must satisfy each of the following:

 

6. What if my company does not meet all the ASX listing requirements?

The ASX takes into account the particular circumstances of each applicant, which means that a company that does not satisfy all the requirements may still be listed on the ASX.

However, it should also be noted that the ASX may refuse an application for listing even though all the requirements have been met.

 

7. How we can help?

Listing on the ASX is a complex matter and requires specific experience and expertise.

We can assist you with every aspect of the listing process and can help you obtain the best results possible.

Here at Ramsden Lawyers our Commercial Law department has the necessary expertise and experience to deal with any ASX matter.

Note: this article is to be taken and interpreted as a general overview and in no way should to be taken or interpreted as legal advice.
Source: http://www.asx.com.au/

Content by John Ramsden