ASX’s proposed new thresholds and requirements for admission to the ASX official list now intended to take effect on 19 December 2016 (subject to necessary regulatory approval).
ASX issued a consultation paper in May 2016 proposing the following changes to the requirements for listing:
- increasing the financial thresholds for listing by lifting the ‘asset test’ thresholds from net tangible assets of $3 million to $5 million or market capitalisation of $10 million to $20 million.
- introducing a 20% minimum free float requirement
- changing the spread test to better demonstrate a sufficient level of investor interest in the entity and its securities to justify the listing.
- making the minimum $1.5 million working capital requirements consistent across all entities admitted under the assets test.
- introducing a requirement for entities admitted under the assets test to provide audited accounts for the last three full financial years, unless ASX agrees otherwise.
The consultation process closed on 24 June 2016 and ASX has since been considering the feedback it has received, including the specific concerns of some industry sectors, and liaising with ASIC. At its recent AGM, ASX confirmed that it expected to publish its response to the consultation, together with the new rules, in October.
The commencement date of the new rules has been pushed back to 19 December 2016 from the initial proposed date of 1 September 2016.
Please contact us at McGuinnLegal if you would like further information on this or need specific advice on any of these issues.